Study Results from University of Verona Broaden Understanding of Healthcare Economics (Late-stage pharmaceutical R&D and pricing policies under…

Study Results from University of Verona Broaden Understanding of Healthcare Economics (Late-stage pharmaceutical R&D and pricing policies under two-stage regulation)

By a News Reporter-Staff News Editor at Clinical Trials Week -- Research findings on Health and Medicine - Healthcare Economics are discussed in a new report. According to news reporting from Verona, Italy, by NewsRx journalists, research stated, "We present a model combining the two regulatory stages relevant to the approval of a new health technology: the authorisation of its commercialisation and the insurer's decision about whether to reimburse its cost. We show that the degree of uncertainty concerning the true value of the insurer's maximum willingness to pay for a unit increase in effectiveness has a non-monotonic impact on the optimal price of the innovation, the firm's expected profit and the optimal sample size of the clinical trial."

Financial support for this research came from European Union Seventh Framework Programme (see also Health and Medicine - Healthcare Economics).

The news correspondents obtained a quote from the research from the University of Verona, "A key result is that there exists a range of values of the uncertainty parameter over which a reduction in uncertainty benefits the firm, the insurer and patients. We consider how different policy parameters may be used as incentive mechanisms, and the incentives to invest in R&D for marginal projects such as those targeting rare diseases."

According to the news reporters, the research concluded: "The model is calibrated using data on a new treatment for cystic fibrosis."

For more information on this research see: Late-stage pharmaceutical R&D and pricing policies under two-stage regulation. Journal of Health Economics, 2016;50():298-311. Journal of Health Economics can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of Health Economics - www.journals.elsevier.com/journal-of-health-economics/)

Our news journalists report that additional information may be obtained by contacting P. Pertile, University of Verona, Dept. of Econ, I-37129 Verona, Italy. Additional authors for this research include M. Forster, P. Pertile and C.F. Burman.

Keywords for this news article include: Verona, Italy, Europe, Healthcare Economics, Health and Medicine, University of Verona.

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