Prescription Drug Market Research Articles

The Influence of Pharmaceutical Companies Marketing Activities on Physicians’ Prescribing: Literature Review

Background: Pharmaceutical companies through marketing strategies introduce the products to the user. Physicians are the target of prescription drug marketing. For a long time, pharmaceutical companies have done many marketing activities. They are spend a big portion for the marketing activities. The aims of that activities, to influence physicians’ prescribing.Objectives: This article aimed to examine the influence of marketing activities from pharmaceutical companies on physicians’ prescribing in various countries.Methods: Scopus is used as a database to collect articles with keywords named “pharmaceutical marketing” and prescribing. Inclusion criteria are original articles, published in 2018-2023, in English, open access. In the end, eight articles were reviewed in this study.Results: The result of this study shows pharmaceutical companies apply a marketing mix strategy to promote their product. This strategy consists of four elements product, price, place, and promotion. All of the element influences physicians’ prescribing, generally. Promotion startegies such as medical representative visits and gifts are the most influential strategies for physicians’ prescribing. The influence can’t be generalized because it also depends on the socioeconomic state of the country, culture, work location or environment, practice experience,geography, and ethical issues.Conclusion: Promotion strategy is the most influential for prescribing than product, place, and price but the influence based oh the physicians’ characteristics. So, pharmaceuitcal compines must indentify their user to decide a appropriate strategy.

Prescription drug spending by payer: Implications for managed care

BackgroundBrand-name prescription drugs are an important driver of prescription drug spending, but different payers may bear these costs differentially necessitating different policy goals for each payer. But little is known about how the top 10 selling drugs in the U.S. impact spending across payers. ObjectiveTo estimate the differential spending burden of top prescription drugs on Medicaid, Medicare, commercial coverage, and out-of-pocket (OOP) spending. MethodsThe percentage of total prescription drug spending, total spending, total prescriptions, and average cost per prescription overall and for each of the following payers – Medicaid, Medicare, private insurance, and OOP – was calculated for each of the top 10 selling prescription drugs using 2017–2019 Medical Expenditure Panel Survey data. ResultsThese 10 prescription drugs accounted for average annual spending of $83.4 billion and 19.0% of all prescription drug spending. Medicare tended to contribute the highest fraction of spending. The average annual cost per prescription ranged from $500 for Advair to $7400 for Tecfidera. Significant variation in the average annual number of prescriptions filled was observed, ranging from 1.4 million for Tecfidera to 13.6 million for Lantus. ConclusionsThe findings highlight the significant impact of the top 10 selling prescription drugs on U.S. prescription drug spending. The wide variation in per prescription cost as well as contribution to each payer's prescription drug burden emphasizes how policies targeting top-selling drugs may differentially impact payers as well as how payer-specific policies may differ substantially even for top selling drugs.

Administrative action on drug pricing: Lessons and opportunities for the Center for Medicare and Medicaid Innovation.

In October 2022, the Biden administration issued an executive order to the Center for Medicare and Medicaid Innovation (CMMI) to develop new health care payment and delivery models to lower prescription drug costs and promote access to innovative therapies. In response, the agency proposed 3 novel drug payment models for testing. To understand the impact that CMMI demonstration projects can have on the prescription drug market. We examined each of the models listed on the CMMI website and searched the Federal Register and news articles for additional models that contained interventions related to patient out-of-pocket drug costs, Medicare drug spending, or Medicaid drug spending. We excluded models with indirect effects on drug costs (for example, bundled payments). We comprehensively reviewed all previous cases in which CMMI has attempted models addressing prescription drug costs and spending and evaluated the circumstances, impact, and lessons learned that may aid policymakers in the design and implementation of new models. We identified 9 CMMI models containing direct interventions related to drug costs. Among prior models addressing drug prices, nearly half (44%, 4/9) were not implemented because of their scope, voluntary nature, and procedural challenges. No implemented models met the CMMI standard for expansion, although key elements of the Senior Savings model limiting monthly insulin costs to $35 were later incorporated into the Inflation Reduction Act. In future CMMI implementation efforts, we suggest maximizing voluntary collaboration when selection bias concerns are minimal, using mandatory models when not, ensuring that the geographic scope is not overly ambitious, and adhering closely to statutory authority and established administrative procedure to minimize legal challenges and maximize model demonstration utility.

Mergers that Matter: The Impact of M&A Activity in Prescription Drug Markets

Mergers that Matter: The Impact of M&A Activity in Prescription Drug Markets

5.1 Primer for Pharmacogenetics: What a Child and Adolescent Psychiatry Provider Should Know

Genetic polymorphisms within the genes that code for proteins involved in the metabolism and targets of drug therapy can influence the efficacy and toxicity of medications. Virtually every pathway of drug metabolism, transport, and action is susceptible to genetic variation. In addition, within the top 200 selling prescription drugs, 59% of the 27 most frequently cited in adverse drug reaction studies are metabolized by at least 1 enzyme known to have gene variants that code for reduced or nonfunctional proteins.

The Price of Human and Veterinary Formulations of Common Medications—Price Discrimination and Innovation in Prescription Drug Markets

Our website uses cookies to enhance your experience. By continuing to use our site, or clicking "Continue," you are agreeing to our Cookie Policy | Continue JAMA Internal Medicine HomeNew OnlineCurrent IssueFor Authors Podcast Publications JAMA JAMA Network Open JAMA Cardiology JAMA Dermatology JAMA Health Forum JAMA Internal Medicine JAMA Neurology JAMA Oncology JAMA Ophthalmology JAMA Otolaryngology–Head & Neck Surgery JAMA Pediatrics JAMA Psychiatry JAMA Surgery Archives of Neurology & Psychiatry (1919-1959) JN Learning / CMESubscribeJobsInstitutions / LibrariansReprints & Permissions Terms of Use | Privacy Policy | Accessibility Statement 2023 American Medical Association. All Rights Reserved Search All JAMA JAMA Network Open JAMA Cardiology JAMA Dermatology JAMA Forum Archive JAMA Health Forum JAMA Internal Medicine JAMA Neurology JAMA Oncology JAMA Ophthalmology JAMA Otolaryngology–Head & Neck Surgery JAMA Pediatrics JAMA Psychiatry JAMA Surgery Archives of Neurology & Psychiatry Input Search Term Sign In Individual Sign In Sign inCreate an Account Access through your institution Sign In Purchase Options: Buy this article Rent this article Subscribe to the JAMA Internal Medicine journal

Antibody Patent Evolution.

The production of antibodies for therapeutic use in clinical medicine has become a focus of the biotechnology industry. In 2021, four of the top six selling prescription drugs were monoclonal antibodies, leading to a reported revenue of over US $ 67 billion dollars. Thus, it is no surprise that the otherwise arcane rules around antibody patents have become increasingly important to drug companies, health care providers, and consumers alike.

Sale of antibiotics without prescription in stand-alone pharmacies in Tamil Nadu.

Non-prescription sale of antibiotics is one of the major causes for increased consumption of antibiotics which facilitates the emergence of drug resistance. Over-the-counter sale of antibiotics in India, without prescription and often at partial doses, is quite common even though the practice is not legal. (1) To interview pharmacists about the sale of over-the-counter medication, and prescription drugs sold without a prescription, in particular; (2) to obtain an understanding of the reasons for such sale from the perspective of the pharmacist. Pharmacists were interviewed with the help of a pre-validated questionnaire in 15 stand-alone pharmacies in a metropolitan city and a tier-2 city in Tamil Nadu. Major points of interest were characteristics of customers requesting antibiotics without a valid prescription, common diseases for which they were sold without prescription, whether patients asked for antibiotics by name or as treatment for their symptoms, and reasons for such requests. Pharmacists readily admitted to selling prescription drugs, including antibiotics without a valid prescription. While they know of antibiotic resistance, not a single pharmacist interviewed by us knew of the causes of antibiotic resistance. The intervention listed in the National Action Plan on Antimicrobial Resistance to develop awareness campaigns targeted at dispensers regarding existing rules and appropriate use of antimicrobials and mandatory training programs on optimal antimicrobial use must be implemented immediately.

Trading Pain for Gain: Addressing Misaligned Interests in Prescription Drug Benefit Administration

Over the last two decades, Pharmacy Benefit Managers (PBMs), organizations that act as middlemen between health plans and drug manufacturers, have become increasingly powerful players in the healthcare industry. PBMs promise to leverage their expertise and ability to aggregate buying power to negotiate lower drug prices and administer prescription drug benefit plans. In practice, however, PBMs are widely criticized for benefitting from, and contributing to, inefficiencies in the prescription drug market, particularly by imposing restrictions on beneficiary access to drugs in exchange for rebates paid to PBMs by manufacturers. To the extent that the rebates are retained by PBMs, or otherwise do not result in a benefit to the beneficiaries, this practice amounts to trading the pain of plan beneficiaries for the PBM’s own gain. Despite this criticism, regulatory and enforcement efforts directed against PBMs have been anemic. Existing structural and legal protections for beneficiaries are largely ineffectual. While this problem is widely acknowledged, regulators have failed to pass new laws that successfully address the challenges posed by the insertion of PBMs as middlemen into the web of prescription drug benefits and reimbursement. Regulators express frustration with the complexity of balancing the interests of beneficiaries with PBMs’ aspirational goal of cost-control, as well as with addressing the inherent conflict of interest in PBMs’ competing goals of profitability for themselves and cost containment for their clients. Lawsuits alleging PBM mistreatment of beneficiaries are sparse, and a consistent vision of what is and is not permissible to PBMs has not emerged from the case law. But the Federal Anti-Kickback Statute can—and there are indications that it increasingly will—be used to regulate manufacturer-PBM rebate arrangements. The U.S. Department of Justice recently settled a case predicated on an allegation that a pharmaceutical manufacturer, Roche, violated the Federal Anti-Kickback Statute when it paid a health insurance company, Humana, a kickback of lump sum debt forgiveness for formulary placement, conditioned on the exclusion of a competitor. Also, the federal government recently adopted a rule applicable to Medicare Part D plans that radically reconfigures the existing incentives by prohibiting manufacturers from extending rebates other than at the point of sale, and from making the rebates contingent on the plans or PBMs taking various steps with respect to encouragement of use of the drugs. These developments likely presage increased use of the Anti-Kickback Statute to attack rebating arrangements and underscore the need for PBMs to reevaluate their current practices with respect to their relationships with manufacturers to ensure that they are complying with the law. In this Article, we argue that the Federal Anti-Kickback Statute and its state law analogs, state anti-kickback statutes, can be used to effectively protect beneficiary interests against manufacturer-purchased, PBM-imposed restrictions on access to drugs. We also identify key issues that may be hampering effective enforcement, and suggest an analysis that effectively addresses these issues. We demonstrate that current law is best understood to allow manufacturers to extend discounts and rebates to plans (either directly or through PBMs) but not to PBMs, and that those rebates cannot make those payments contingent on PBMs or plans adopting specific preferences for drugs. By embracing these principles, PBMs can protect beneficiary interests, achieve enforcement certainty, and perhaps ward off the ultimate adoption of more radical restrictions.

An experimental test of Situational Action Theory of crime causation: Investigating the perception-choice process

Criminal action, according to Situational Action Theory (SAT), is a two-stage process consisting of a perception and a choice process. This Germany-wide vignette study (N = 3,088, participants recruited offline) provides an explicit and extensive test of these processes. It experimentally varied the informal moral context, deterrence (sanctions and detection risk), and possible gains of selling prescription drugs illegally in a 2x2x2×2 between-subject design. Personal morality and self-control were measured. Double-hurdle models show that personal morality served as a filter for the perception of criminal alternatives. Law-conforming moral context information, high self-control, and deterrence lowered the crime willingness. Thereby, this study underlines the usefulness of an explicit modeling of the dual-process of criminal conduct, in which certain antecedents only play a role in a certain process. While several findings corroborate assumptions from SAT, an influence of the informal moral context was only found in the choice process, not in the perception process.

Oklahoma Supreme Court overturns opioid verdict against J&J

Last week, the Oklahoma Supreme Court overturned a $465 million verdict against drug maker Johnson & Johnson for its alleged role in the opioid epidemic. “We hold the opioid manufacturer's actions did not create a public nuisance,” according to the opinion. “The district court erred in extending the public nuisance statute to the manufacturing, marketing, and selling of prescription drugs.” Former Oklahoma Attorney General Mike Hunter filed the lawsuit in 2017. “Applying the nuisance statutes to lawful products as the State requests would create unlimited and unprincipled liability for product manufacturers; this is why our Court has never applied public nuisance law to the manufacturing, marketing, and selling of lawful products,” according to the opinion. In a statement, Johnson and Johnson said its “actions relating to the marketing and promotion of these important prescription pain medications were appropriate and responsible,” but also said “the opioid crisis is a tremendously complex public health issue, and we have deep sympathy for everyone affected.”

Perverse Results from Pharmaceutical Patents in the United States.

In the United States, pharmaceutical patents have had a number of perverse and anticompetitive effects on the development and marketing of prescription drugs. Although some of these effects are unique to the United States, others have implications for patent policy across the world. Among the negative effects of drug patents are: (1) examples of misguided, anti-social, and anticompetitive promotion of patented drugs; (2) misguided incentives that push drug firms toward too much or too little research and development in critical areas: and (3) cartel-facilitating conduct linked to patent licenses or settlements of litigation involving drug patents. Some of these issues can be addressed directly through reforms in patent and competition law policy. There is, however, a need for a broader study of the role of patents in promoting drug research. That study should consider alternatives to the patent system, such as a prize system structured to supplement or partially replace patent rewards for pharmaceutical R&D.

The Effects of Message Type and Sponsorship Disclosure in Influencer Marketing of Prescription Drugs

This study examined the effects of message type and sponsorship disclosure of prescription drug influencer marketing on consumers’ attitude toward the ad and behavioral intentions. The Persuasion Knowledge Model was used as a theoretical framework to understand the underlying mechanism of the effects. An online experiment with 2 (message type: unbranded vs. branded) × 2 (disclosure: absence vs. presence) between-subject factorial design was conducted. Unbranded message and message without disclosure resulted in lower persuasion knowledge activation, leading to higher attitude toward the ad and behavioral intentions. A significant interaction effect was also found. Theoretical, practical, and ethical implications are discussed. Supplemental data for this article is available online at https://doi.org/10.1080/08911762.2021.1913273 .

Common Agent or Double Agent? Pharmacy Benefit Managers in the Prescription Drug Market

In the U.S., pharmacy benefit managers (PBMs) manage prescription drug purchases for payers. Firms selling branded pharmaceuticals bid for preferred slots on the PBM's formulary by offering rebates off of list price. We find that PBMs enhance efficiency, but the gains do not accrue to consumers or drug makers. Our analysis offers insights into otherwise puzzling questions. Why do drug makers pay rebates to PBMs? Why do payers delegate formulary operations to a few large PBMs? Why are list prices so high? Why might PBMs vertically integrate with payers? Our framework also offers insights into proposals for market reform.

Unintended Consequences of Products Liability: Evidence from the Pharmaceutical Market*

Abstract We explain a surprising effect of tort liability in the market for prescription drugs. Greater punitive damage risk seems to increase prescription drug utilization in states without non-economic damage caps but decrease utilization in states with such caps. We offer an explanation for this puzzle. The vertical production process for drugs involves national upstream producers (drug companies) and local downstream producers (doctors). When a single state reallocates liability from downstream to upstream producers, national drug companies see little reason to alter their nationwide output decisions, but local physicians have incentives to increase their prescriptions in that state. The net result is higher local output. We show how this dynamic can explain our puzzle by demonstrating that punitive damages shift liability upstream from doctors to drug companies, but not when non-economic damages caps limit physician malpractice liability. We provide evidence explaining when, how, and why this type of liability shifting occurs (JEL K13, I11, I18).

Policy Recommendations to Promote Prescription Drug Competition: A Position Paper From the American College of Physicians.

The prescription drug market in the United States relies on competition to keep prices reasonable. Although many policies have been implemented to spur competition and decrease costs for patients, these policies may be outdated and should be redesigned and updated to achieve success in the current prescription drug market. In this paper, the American College of Physicians (ACP) proposes that new policies should be implemented to prevent market manipulation, help lower-cost alternatives make it to the market faster, and ensure a robust and competitive market for generic and biosimilar drugs. The ACP believes these changes will have a meaningful effect on patients without shifting costs to other areas of the health care system.

Marketing investment and pharmaceutical product diffusion

PurposeThis paper aims to explore the influence of marketing investment on drug diffusion processes, to analyze the heterogeneity of the diffusion characteristics and to understand the drug diffusion patterns in the prescription and over-the-counter (OTC) markets.Design/methodology/approachThe study introduces marketing investment into the Bass model. The authors use the Generalized Bass Model (GBM) to examine the influence of marketing efforts on drug diffusion in Chinese prescription and OTC markets.FindingsThe results of this study suggest that the imitation effect in the prescription drug market is greater than that in the OTC drug market; drug diffusion in the OTC market reaches saturation earlier in the diffusion process. Before reaching the critical state, the effect of marketing investment on drug diffusion in the OTC market is greater than that in the prescription market, and after the critical state, drug diffusion in the prescription market is more sensitive to marketing investment.Originality/valueThe study demonstrates the value of the GBM in empirical analyses of drug diffusion across two distinct markets, and the marketing regulation policies governments adopt have a powerful impact on the speed at which drugs become available in different markets. It enriches the extant product diffusion literature by highlighting the different diffusion patterns of the two segments of pharmaceutical market.

How The ACA Reframed The Prescription Drug Market And Set The Stage For Current Reform Efforts.

The Affordable Care Act contained a range of provisions that altered prescription drug access and affordability for patients, payers, and providers. Yet the act stopped short of instituting systemic changes in the pricing of drugs, in part to address concerns that more fundamental changes might disrupt the development of new medicines. Looking back a decade after the Affordable Care Act became law, we found that new drug approvals have accelerated and the therapeutic advances embodied in some novel medicines are substantial-as are the prices that companies are charging for them. The lack of affordability of prescription drugs has become an increasing challenge for American patients and payers, particularly those with limited budgets. In this article we consider how things have changed in the past decade and how missed opportunities in the Affordable Care Act's passage figure prominently in the current drug pricing debate.

Structural Models of the Prescription Drug Market

Structural models have become a frontier tool in business and economics research. In this survey, we discuss the literature on structural models for the prescription drug market, which has attracted a significant attention from researchers in marketing and economics, and related fields. The literature has evolved from adopting standard structural models developed for other markets to models that are specifically designed to capture the nuance of drug prescription behaviour. Along the way, these empirical frameworks have not only greatly improved in explaining stylized facts, but also at producing better (more reasonable) counterfactual predictions. Topics covered by this survey include the application of learning models to explain slow diffusion, post-patent expiry competition, pre-patent expiry competition, R&D and new drug introduction, managerial and public policy analysis, and the economics of the Medicare Part-D program. We conclude by discussing future research directions.

Understanding profit margins of medical providers from prescription drugs: evidence from Taiwan.

BackgroundThis study empirically estimates the magnitude and associated determinants of profit margins that medical providers earn from prescription drugs based on Taiwan’s pharmaceutical market.MethodsOur main data set is from the population-based claims data compiled by the National Health Insurance Research Database covering three waves of price adjustment: July–December 2004, October 2007–September 2008 and October 2009–September 2010. Only drugs whose reimbursement prices were adjusted using the R-zone formula were used as samples for this study. By calculating the difference between retail and wholesale prices for 796 pharmaceutical products, we can estimate the profit margin determinants using the regression model.ResultsWe found evidence that suppliers of generic drugs tend to offer larger discounts to medical providers than suppliers of brand-name drugs. In addition, the countervailing power of wholesale pharmaceuticals, as measured by the discount rate offered by pharmaceutical manufacturers, is positively associated with the degree of competition within the pharmaceutical market and the size of the market itself.ConclusionsOur findings imply that the profit-seeking behaviour exhibited by medical providers is the engine of competitive forces in Taiwan’s prescription drug market. This creates financial incentives for them, which in turn influences their choices of prescription drugs.