This paper examines the idea that the USA has outshined Europe in the race for new medicines as a result of a flight of business R&D expenditure to the USA. It adopts a methodology that accounts for R&D price inflation, considers the role of both ‘performed' R&D and ‘extra-mural' R&D, and...

Current business models have struggled to support early-stage drug development. In this paper, we study an alternative financing model, the mega-fund structure, to fund drug discovery. We extend the framework proposed in previous studies to account for correlation between phase transitions in...

Medical providers' profit considerations might take priority over their patients' needs in Taiwan because they are allowed to both dispense and prescribe medications. I examine this problem in the demand of the anti-diabetic drugs market using information from millions of claims. Empirical...

This article assesses the price-negotiation role played by Pharmacy Benefit Managers (PBMs), which have been at the heart of the recent drug pricing debate. I start by collecting novel data on the net-of-rebate prices of anti-cholesterol drugs. These prices are then used to estimate a dynamic...

This paper estimates three duration models, one for each of the three clinical phases of drug development using publicly available data. Specifically, we estimate three discrete time mixed proportional hazard models, with some parameter constraints across models. We present the estimated...

This paper analyzes how drug approval procedures influence the incentives of pharmaceutical firms to launch new drugs in the presence of international reference pricing. First, we show that the set of countries in which a firm commercializes a new drug is larger when countries do not approve...