The pricing of pharmaceuticals: an international comparison

Four types of pricing policies and regulations are recognized: product price control, as practiced in France, Italy, Portugal, and Spain; reference pricing, as in Germany and the Netherlands; profit control, as in the United Kingdom; and no control, as in the United States. The system in Canada is a hybrid of product price control and reference pricing; a producer may set any price for a new product as long as it is within guidelines established by a federal government review board. The implications of each system are discussed. Various prescription reimbursement policies are used to control consumer and government expenditures for drugs. Expenditure is a function of many factors, including price, consumption patterns, reimbursement policies, and social, economic, and political values.