Empirical and conceptual work relating to medicines pricing

Previous EEPRU research has developed a framework to assess the long-term implications of NHS payment levels for new pharmaceuticals, taking into account how these payments influence manufacturers’ decisions about future research and development (R&D). In this theme of work for the new EEPRU programme, we plan to analyse how payment for new pharmaceuticals influences the number and quality of new drugs and their production costs. This evidence will inform the development of a model to evaluate the implications of alternative pricing policies. We will also extend our framework to consider additional factors including the joint effects of individual countries' pharmaceutical pricing policies on pharmaceutical innovation, the contributions of public sector R&D, and potential broader effects of pharmaceutical pricing on the UK economy.