{"title":"Marketing Status and Brand-Name Drug Prices: Evidence From Rx-To-OTC Switch.","authors":"Lin Lin, Bo Wang","doi":"10.1002/hec.4952","DOIUrl":null,"url":null,"abstract":"<p><p>This study examines the impact of marketing status on brand-name pricing by exploiting Prescription to over-the-counter (Rx-to-OTC) switches between 2001 and 2016. Using a Stacked difference-in-differences design, we find that the retail prices of brand-name drugs reduce substantially following an Rx-to-OTC switch, while accounting for potential confounding factors related to patent expiration and generic entry. We show that the reduction in branded prices is primarily driven by increases in patient price elasticity in the OTC market. These results highlight the need to improve patient price sensitivity to address the rising prices of brand-name prescription drugs in the United States, especially those with characteristics similar to over-the-counter drugs.</p>","PeriodicalId":12847,"journal":{"name":"Health economics","volume":" ","pages":""},"PeriodicalIF":2.0000,"publicationDate":"2025-02-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Health economics","FirstCategoryId":"3","ListUrlMain":"https://doi.org/10.1002/hec.4952","RegionNum":3,"RegionCategory":"医学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This study examines the impact of marketing status on brand-name pricing by exploiting Prescription to over-the-counter (Rx-to-OTC) switches between 2001 and 2016. Using a Stacked difference-in-differences design, we find that the retail prices of brand-name drugs reduce substantially following an Rx-to-OTC switch, while accounting for potential confounding factors related to patent expiration and generic entry. We show that the reduction in branded prices is primarily driven by increases in patient price elasticity in the OTC market. These results highlight the need to improve patient price sensitivity to address the rising prices of brand-name prescription drugs in the United States, especially those with characteristics similar to over-the-counter drugs.
期刊介绍：
This Journal publishes articles on all aspects of health economics: theoretical contributions, empirical studies and analyses of health policy from the economic perspective. Its scope includes the determinants of health and its definition and valuation, as well as the demand for and supply of health care; planning and market mechanisms; micro-economic evaluation of individual procedures and treatments; and evaluation of the performance of health care systems.
Contributions should typically be original and innovative. As a rule, the Journal does not include routine applications of cost-effectiveness analysis, discrete choice experiments and costing analyses.
Editorials are regular features, these should be concise and topical. Occasionally commissioned reviews are published and special issues bring together contributions on a single topic. Health Economics Letters facilitate rapid exchange of views on topical issues. Contributions related to problems in both developed and developing countries are welcome.
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