Paper #762

Title:

Regulatory ambivalence and the limitations of pharmaceutical policy in Spain

Authors:

Joan Costa and Jaume Puig

Date:

June 2004

Abstract:

Broadly speaking, pharmaceutical policy in Spain has been unable to control either the price or the volume of drugs prescribed. Limited attempts have been made to bring together the regulation of the pharmaceutical market and policies, in pursuit of the desired goals of efficiency and quality. This paper assesses the regulation of the Spanish pharmaceutical market over the last two decades by examining regulation and policy and the available empirical evidence on their appreciable effects, and presents recommendations for policy design. Our findings suggest that policies aiming to improve efficiency and quality have not managed to contain costs, while cost-effectiveness is still overlooked. We argue that future policies should encourage broader participation in the decision-making processes and promote a higher degree of competition, especially from generic drugs.

Keywords:

Spain, generic penetration, reference pricing, negative lists, pharmaceutical regulation

JEL codes:

I18, L51, l52, l65

Area of Research:

Labour, Public, Development and Health Economics

CRES Series number:

42

Published in:

Journal of Pharmaceutical Finance, Economics & POlicy 2005;13(4): 33-49

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