The Oxford Handbook of the Economics of the Biopharmaceutical Industry

Edited by Patricia M. Danzon and Edited by Sean Nicholson

OUP USA Oxford Handbooks in Economics

576 pages | 41 illustrations | 171x248mm

978-0-19-974299-8 | Hardback | 31 May 2012

Price: £95.00

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First comprehensive review of the economics of the biopharmaceutical industry by leading academic health economists.
Summarizes in accessible language state-of-the-art academic thinking on the main issues facing the biopharmaceutical industry.

The biopharmaceutical industry has been a major driver of technological change in health care, producing unprecedented benefits for patients, cost challenges for payers, and profits for shareholders. As consumers and companies benefit from access to new drugs, policymakers around the globe seek mechanisms to control prices and expenditures commensurate with value. More recently the 1990s productivity boom of new products has turned into a productivity bust, with fewer and more modest innovations, and flat or declining revenues for innovative firms as generics replace their former blockbuster products.

This timely volume examines the economics of the biopharmaceutical industry, with 18 chapters by leading academic health economists. Part one examines the economics of biopharmaceutical innovation including determinants of the costs and returns to new drug development; how capital markets finance R&D and how costs of financing the biopharmaceutical industry compare to financing costs for other industries; the effects of safety and efficacy regulation by the Food and Drug Administration (FDA) and of price and reimbursement regulation on incentives for innovation; and the role of patents and regulatory exclusivities. Part two examines the market for biopharmaceuticals with chapters on prices and reimbursement in the US, the EU, and other industrialized countries, and in developing countries. It looks at the optimal design of insurance for drugs and the effects of cost sharing on spending and on health outcomes; how to measure the value of pharmaceuticals using pharmacoeconomics, including theory, practical challenges, and policy issues; how to measure pharmaceutical price growth over time and recent evidence; empirical evidence on the value of pharmaceuticals in terms of health outcomes; promotion of pharmaceuticals to physicians and consumers; the economics of vaccines; and a review of the evidence on effects of mergers, acquisitions and alliances.

Each chapter summarizes the latest insights from theory and recent empirical evidence, and outlines important unanswered questions and areas for future research. Based on solid economics, it is nevertheless written in terms accessible to the general reader. The book is thus recommended reading for academic economists and non-economists, and for those in industry and policy who wish to understand the economics of this fascinating industry.

Readership: Academic economists and non-economists, and those in industry and policy who wish to understand the economics of this fascinating industry. Economics Ph.D students and advanced undergraduates as well.

Edited by Patricia M. Danzon, Professor, University of Pennsylvania, and Edited by Sean Nicholson, Professor, Cornell University

Patricia Danzon is Celia Moh Professor at The Wharton School, University of Pennsylvania, where she is former Chair of the Health Care Systems Department, and Professor of Insurance and Risk Management. She received a B.A. from Oxford University and a Ph.D. in Economics from the University of Chicago. She is an internationally recognized expert on health economics and policy, and on the biopharmaceutical industry in particular. She is a member of the Institute of Medicine and a Research Associate of the National Bureau of Economic Research. She has served as a consultant to many governmental agencies, NGOs and private corporations in the US and internationally. Sean Nicholson is Associate Professor of Policy Analysis and Management (PAM) at Cornell University and a Faculty Research Fellow at the National Bureau of Economic Research. He received a B.A. from Dartmouth College in 1986 and a Ph.D. in economics from the University of Wisconsin-Madison in 1997. He is a recognized expert in

economics, particularly with regard to the biopharmaceutical industry and the medical workforce.

Contributors:
Ana Aizcorbe is Chief Economist of the Bureau of Economic Analysis for the U.S. Department of Commerce.; Ernst R. Berndt is the Louis E. Seley Professor in Applied Economics at the MIT Sloan School of Management.; Patricia M. Danzon is the Celia Moh Professor at The Wharton School, University of Pennsylvania, where she is a Professor and former Chair of the Health Care Systems Department, and Professor of Insurance and Risk Management.; Joseph A. DiMasi is Director of Economic Analysis at the Tufts Center for the Study of Drug Development, Tufts University.; Michael Drummond is Professor of Health Economics and former Director (December 1995-September 2005) of the Centre for Health Economics at the University of York.; Mark Duggan is a Professor of Business and Public Policy at the Wharton School at the University of Pennsylvania and a Research Associate at the National Bureau of Economic Research.; Rebecca S. Eisenberg is the Robert and Barbara Luciano Professor of Law at the University of Michigan Law School.; Craig Garthwaite is Assistant Professor of Management and Strategy at the Kellogg School of Management at Northwestern University.; Dana P. Goldman is a Professor and the Norman Topping Chair in Medicine and Public Policy at the University of Southern California. Until Fall 2009, he held RAND's Distinguished Chair in Health Economics and directed RAND's program in Economics, Finance, and Organization. He is also an Adjunct Professor of Health Services and Radiology at UCLA.; Henry G. Grabowski is Professor Emeritus and Director of the Program in Pharmaceutical Health Economics at Duke University.; Scott E. Harrington is the Alan B. Miller Professor in the Health Care Management and Insurance and Risk Management departments at the Wharton School, University of Pennsylvania. He is an adjunct scholar for health policy at the American Enterprise Institute.; Geoffrey Joyce is an Associate Professor of Pharmaceutical Economics at the University of Southern California, Director of Health Policy at the Leonard D. Schaeffer Center, and a senior economist at RAND.; Don Kenkel is a Professor in the Departments of Policy Analysis and Management, and Economics, and co-Director of the Institute on Health Economics, Health Behaviors and Disparities at Cornell University.; Hannah E. Kettler is Senior Program Officer and Economist for the Global Health Policy and Finance team at the Bill and Melinda Gates Foundation.; Eric Keuffel is Assistant Professor in the Department of Risk, Insurance, and Healthcare Management at the Fox School of Business at Temple University.; Margaret Kyle is a Professor at the Toulouse School of Economics and a Researcher for the Institut d'Economie Industrielle (IDEI) in Toulouse, France.; Darius Lakdawalla is an Associate Professor in the University of Southern California (USC) School of Policy, Planning, and Development (SPPD), and Director of Research at the USC Schaeffer Center for Health Policy and Economics.; Anup Malani is the Lee and Brena Freeman Professor of Law at the University of Chicago. He is also a Professor at the University of Chicago Pritzker School of Medicine, a University Fellow at Resources for the Future, Washington, D.C.; a Faculty Research Fellow at the National Bureau of Economic Research and an editor of the Journal of Law and Economics.; Alan Mathios is the Rebecca Q. and James C. Morgan Dean of Cornell University's College of Human Ecology. Prior to being dean he served as Senior Associate Dean for Academic Affairs and Undergraduate Education for the College of Human Ecology.; Joseph P. Newhouse is the John D. MacArthur Professor of Health Policy and Management at Harvard University, Director of the Division of Health Policy Research and Education, chair of the Committee on Higher Degrees in Health Policy, and Director of the Interfaculty Initiative in Health Policy.; Sean Nicholson is a Professor in the Department of Policy Analysis and Management at Cornell University, where he is currently conducting research on the value of new medical technologies; the benefits of physician specialization; the effect of financial incentives on physicians' treatment decisions; and the causes of autism.; Mark V. Pauly is the Bendheim Professor and Professor of Health Care Management at the Wharton School of the University of Pennsylvania.; Tomas Philpson is the Daniel Levin Professor of Public Policy Studies in the Irving B. Harris Graduate School of Public Policy Studies at The University of Chicago.; David B. Ridley is an Assistant Professor of Business and Economics at Duke University, where he also earned a doctorate in economics. In his research Ridley examines innovation, location, and pricing.; Frank A. Sloan is the J. Alexander McMahon Professor of Health Policy and Management and Professor of Economics at Duke University. He is the former Director of the Center for Health Policy, Law and Management at Duke (CHPLM) that originated in 1998.; Neeraj Sood is Director of International Programs at the Leonard D. Schaeffer Center for Health Policy and Economics and Associate Professor at the Titus Family Department of Clinical Pharmacy, Pharmaceutical Economics & Policy at the University of Southern California.; Corinna Sorenson is a Research Fellow in Health Policy at the London School of Economics (LSE). She also serves as Deputy Editor of the journal, Globalization and Health, and is part of the Executive Committee of the European Health Technology Institute for Socio-Economic Research (EHTI).; Adrian Towse MA, MPhil, is the Director of the Office of Health Economics. The OHE commissions research, publications and meetings on the economics of the pharmaceutical industry, health care systems and the use of health technology assessment.

The specification in this catalogue, including without limitation price, format, extent, number of illustrations, and month of publication, was as accurate as possible at the time the catalogue was compiled. Occasionally, due to the nature of some contractual restrictions, we are unable to ship a specific product to a particular territory. Jacket images are provisional and liable to change before publication.

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