Pharmaceutical Pricing Practices, Utilization and Costs - Meeting Summary. II. Pricing Practices in the Pharmaceutical Market


The second session of the conference explored pricing practices in the brand-name pharmaceutical market, factors influencing manufacturers' pricing decisions, pricing practices across markets and purchasers, and the potential impact of price transparency on pricing practices. The session included five formal presentations:

  • Jack Hoadley, Ph.D., Division of Health Financing Policy, Office of the Assistant Secretary for Planning and Evaluation (ASPE), DHHS, presented findings from an April 2000 DHHS report indicating that pharmaceutical manufacturers charge different purchasers varying prices for prescription drugs.
  • Anna Cook, Ph.D., Mathematica Policy Research, Inc., explained why different purchasers pay difference prices for prescription drugs.
  • Joseph DiMasi, Ph.D., Tufts Center for the Study of Drug Development, Tufts University, presented an analysis showing the impact of new drug prices in different therapeutic classes on pharmaceutical expenditures from 1995 to 1999.
  • Robert Freeman, AstraZeneca Pharmaceuticals, gave his perspectives on the factors that brand-name prescription drug manufacturers consider when deciding to invest in a new product and when setting prices for new products.
  • Stephen Schondelmeyer, Pharm. D., Ph.D., PRIME Institute, University of Minnesota, argued that the U.S. pharmaceutical market is not an efficient market and recommended government regulation to increase the transparency of drug prices.

The session also included a Panel Discussion and a discussion of Research Questions.