for these developments included the global economic downturn (Canada), market consolidation processes (Canada, Spain) and the strategic decision taken by national representatives of generic companies to close their sales or market access departments (Norway, Switzerland). When they announced cost-containment measures, governments were frequently confronted with opposition of pharmaceutical industry (e.g. media campaigns, legal challenges) who expressed their concern of negative consequences for the performance of the pharmaceutical sector. In two countries (Hungary, Spain) industry proposed alternative solutions to prevent the implementation of planned cost-containment measures. ConClusions: While cost-containment measures contributed to impact negatively the performance of pharmaceutical industry in some cases, their consequences appeared to be less severe than previously expected. This suggests that cost-containment is less relevant than other performance-impacting factors.
PHP331Are Drug Procurement ProceDure AnD AwArD criteriA in eu HosPitAl setting stAnDArDizeD AnD Do tHey tAke into Accounts effective suPPly QuAlity?
flows and the required cost of capital, can be used to validate the price of the new drug from a narrow investor's perspective. The free cash flow represent the sales from the pharmaceuticals, and cash necessary for capital expenditures represent the costs for research & development (R&D) and marketing. The cost of capital refers to the opportunity cost of making a specific investment, which is the rate of return required to persuade the investor to make a given investment. Conclusion: We propose a policy approach for the evaluation of innovative drugs by bridging concepts from health economics and business economic valuation. This approach may justify a drug price from an investor's perspective when the ICER exceeds the threshold and may be used in negotiations between governments and companies.
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