Pricing, Profits, and Technological Progress in the Pharmaceutical Industry | Zendy

F. M. Scherer | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Pricing, Profits, and Technological Progress in the Pharmaceutical Industry

Author(s) -

F. M. Scherer

Publication year - 1993

Publication title -

the journal of economic perspectives

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 9.614

H-Index - 196

eISSN - 1944-7965

pISSN - 0895-3309

DOI - 10.1257/jep.7.3.97

Subject(s) - pharmaceutical industry , incentive , profitability index , investment (military) , economics , principal (computer security) , business , industrial organization , market economy , finance , law , political science , microbiology and biotechnology , politics , computer science , operating system , biology

The decades-old debate over pharmaceutical industry prices, profits, and innovation has again intensified. A number of events coalesced to refocus public interest on pharmaceuticals. Contributing to public concern were Bureau of Labor Statistics price index increases for pharmaceuticals far outpacing those for the products of other industries. Another prominent characteristic of the pharmaceutical industry has been its extraordinarily high reported profitability. This article examines the phenomena that precipitated the current pharmaceuticals debate, their historical antecedents, and the principal questions at issue. In the author's considered judgment, a pell-mell march toward regulation of pharmaceutical industry pricing could seriously impair the industry's incentives for investment in new products.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research