ArticleHealth economics2021
Estimating the shares of the value of branded pharmaceuticals accruing to manufacturers and to patients served by health systems.
Article in Health economics, 2021. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 14 papers, 1 of them a synthesis that pooled it.
What it found
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The abstract states no effect estimate the extractor could read, or names no intervention and outcome on the map, so this paper lights no cell and moves no belief. It is still indexed, cited and linked below.
The trial behind it
Trials whose registry record cites this paper, or whose number appears in the abstract. A trial that started after this paper was published is citing it as background, not reporting it.
Neither the registry nor the abstract names a trial number. If this is a trial report, that itself is worth knowing.
Who cites it
14 citing papers in PubMed, 1 synthesis or guideline pooled it.
- Estimating the Share of Social Surplus Generated by Pharmaceutical Innovation Accruing to Manufacturers: A Systematic Literature Review.Applied health economics and health policy · 2026Pooled it
- Action Plan to Better Approximate Reality in Cost-Effectiveness Analyses.Applied health economics and health policy · 2026Article
- Exploring the consequences of including off-patent prices in reimbursement decisions for patented drugs.The European journal of health economics : HEPAC : health economics in prevention and care · 2026Article
- Re-anchoring the Value of Innovative Therapies in NICE Decision Making When Comparators are Cost Ineffective: A Case Study of Late-Onset Pompe Disease.PharmacoEconomics · 2026Review
- Economic Consequences of Increasing the NICE Cost-Effectiveness Threshold.PharmacoEconomics · 2026Article
- Missing Pieces of the Puzzle to Address Market Failures for Antibiotics: Delinked Payment Systems and Insurance Value.PharmacoEconomics - open · 2025Review
- Guiding Health Resource Allocation: Using Population Net Health Benefit to Align Disease Burden with Cost Effectiveness for Informed Decision Making.Applied health economics and health policy · 2025Article
- A Framework for Using Cost-effectiveness Analysis to Support Pricing and Reimbursement Decisions for New Pharmaceuticals in a Context of Evolving Treatments, Prices, and Evidence.PharmacoEconomics · 2025Article
- Drug Prices After Patent Expirations in High-Income Countries and Implications for Cost-Effectiveness Analyses.JAMA health forum · 2024Article
- A Framework for the Fair Pricing of Medicines.PharmacoEconomics · 2024Article
- Resource allocation in public sector programmes: does the value of a life differ between governmental departments?Cost effectiveness and resource allocation : C/E · 2023Article
- A theory on ICER pricing and optimal levels of cost-effectiveness thresholds: a bargaining approach.Frontiers in health services · 2023Article
- Supply-Side Cost-Effectiveness Thresholds: Questions for Evidence-Based Policy.Applied health economics and health policy · 2022Review
- Estimating the shares of the value of branded pharmaceuticals accruing to manufacturers and to patients served by health systems.Health economics · 2021Article
Corrections and comments
PubMed lists nothing against this paper. Absence here is not a guarantee, only a check that was made.
Authors and funding
4 authors.
Funding
Abstract
Previous studies have estimated that patients served by health systems accrue 59-98% of the value generated by new pharmaceuticals. This has led to questions about whether sufficient returns accrue to manufacturers to incentivize socially optimal levels of R&D. These studies have not, however, fully reflected the health opportunity costs imposed by payments for branded pharmaceuticals. We present a framework for estimating how the value generated by new branded pharmaceuticals is shared. We quantify value in net health effects and account for benefits and health opportunity costs in the patent period and post-patent period when generic/biosimilar products become available. We apply the framework to 12 National Institute for Health and Care Excellence appraisals and show that realized net health effects range from losses of 160%, to gains of 94%, of the potential net health benefits available. In many cases, even in the long run, the benefits of new medicines are not sufficient to offset the opportunity costs of payments to manufacturers, and approval is expected to reduce population health. This cannot be dynamically efficient as it incentivizes future innovation at prices which will also reduce population health. Further work should consider how to reflect these findings in reimbursement policies.
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Registered trials
Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.