This study examines the relationships between firm size, R&D costs and output in the pharmaceutical industry. Porject-level data from a survey of 12 US-owned pharmaceutical firms on drug development costs, development phase lengths and failure rates are used to determine estimates of the R&D...

The 1984 Drug Price Competition and Patent Term Restoration Act (the Waxman-Hatch Act) is unique in many ways. This Law was the first change in U.S. patent terms since 1861. It simultaneously lowered the barrier to entry for generic drug firms and increased patent terms for new drugs delayed by...

The focus of this paper is the economics of the pharmaceutical R&D process. Major developments currently impacting the industry include the fact that R&D costs for new drugs are rising very rapidly. Product life cycles are also shortening, meaning there is less time to recover R&D costs and...

In 1997, Grabowski and Mullins described why pharmacy benefit management use of pharmacoeconomics was limited. The current manuscript examines recent changes in health care payers' use of pharmacoeconomic information, payers' perceptions of that information's value for informing formulary...

The study compared changes over time in health expenditures across race and ethnicity, using data from the Medical Expenditure Panel Survey. Changes from 1996-1997 to 2004-2005 were compared between non-Hispanic Whites (NHW) and non-Hispanic Blacks (NHB) and between NHW and Hispanic Whites (HW)....

Pharmacy benefit management companies (PBMs) have evolved over the past decade in response to the increased demand for health care cost containment. Their activities include the implementation of drug formularies and the negotiation of rebates from manufacturers. Our analysis of this industry is...