Presentation

Session: Posters
Room: TBA
Time: Fri 13:00-14:30

Presenter: Aysegul Timur (Hodges University. Kenneth Oscar Johnson School of Business)

Abstract: This paper explores price differences in the European Union (EU) pharmaceutical market, the EU’s fifth largest industry. With the aim of enhancing quality of life along with industry competitiveness and R&D capability, many EU directives have been adopted to achieve a single EU-wide pharmaceutical market. Using annual 1994–2003 IMS data on prices of molecules that treat cardiovascular disease, we attempt to explain drug price dispersion across five EU countries. Hedonic regressions show that over time, cross-country differences in both prices and the effects of drug characteristics on prices have indeed declined, while the impact of market competition on price differences has strengthened considerably relative to that of drug quality. We interpret this as evidence of achievement of a single pharmaceutical market in response to increasing European Commission efforts to coordinate the EU pharmaceutical market.
Key Terms: EU pharmaceuticals, single market, price differences, pharmaceutical regulations, hedonic regressions
Authors:: Aysegul Timur (Hodges University. Kenneth Oscar Johnson School of Business) , Gabriel Picone (University of South Florida. Economics) and Jeffrey DeSimone (University of Texas at Arlington. Economics)

Presentation: Is There Any Evidence of Achieving a Single Pharmaceutical Market in the European Union?