Pharmaceutical Economics encompasses the economics of the pharmaceutical industry but it is far more than that. Because pharmaceuticals have an important impact on public health, government actions are necessarily involved, which have a major effect on market outcomes. An important example is that the US generic pharmaceutical industry was largely created by 1984 legislation. The interaction of private incentives and government regulations has together determined pharmaceutical products, prices and quantities in both the branded and generic industries. In this paper, we review the extensive literature on these subjects from which one can draw conclusions regarding the performance of this important sector of the economy.
Keywords: Regulatory structure, pharmaceutical reimbursement, generic pharmaceuticals, pharmaceutical industry, pharmaceutical marketing, pharmaceutical research and development, pharmaceutical mergers
Jel Code: L65, I112, I118