The case for transparency in pricing
By Dermot Glynn
Many of those responsible in EU Member States for purchasing pharmaceuticals on behalf of national health or health insurance systems base their decisions on the price to offer partly on prices being paid elsewhere.This system is referred to as External Reference Pricing (ERP), and iscontroversial: some seeing it as clearly helpful, particularly to Member Statesless well equipped than (for example) the UK to carry out sophisticated cost/benefit assessments of new medicines, while others fear that it deters suppliers from offering affordable prices to lower-income purchasers. This article explores some of the economic issues involved in policies towards price transparency in this and other markets, and implications of this for competition and other policy-makers. For the full article click the link below:
This article appears in the Competition Law Journal at  CLJ 237 and has been made available, free of charge, as a service to our readers.
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