NDLI: Analyses of direct and indirect impacts of a positive list system on pharmaceutical R&D investments.

Content Provider	World Health Organization (WHO)-Global Index Medicus
Author	Han, Euna Kim, Tae Hyun Jeung, Myung Jin Lee, Eui-Kyung
Spatial Coverage	Republic of Korea
Description	Country affiliation: South Korea Author Affiliation: Han E ( College of Pharmacy and Gachon Institute of Pharmaceutical Research, Gachon University, Incheon, South Korea.)
Abstract	BACKGROUND: The South Korean government recently enacted a Positive List System (PLS) as a major change of the national formulary listing system and reimbursed prices for pharmaceutical products. Regardless of the primary goal of the PLS, its implementation might have spillover effects by influencing the pharmaceutical industry's research and development (R&D), potentially leading to a variety of responses by firms in relation to their R&D activities. OBJECTIVE: We investigated the spillover effect of the PLS on R&D investments of the pharmaceutical industry in Korea through both direct and indirect channels, examining the influence of the PLS on sales profit and cash flow. METHODS: Data from 9 years (5 before and 4 after PLS implementation) were drawn from the financial statements of firms whose stocks were exchanged in 2 official stock markets in Korea (526 firms) and additional pharmaceutical firms whose financial performance was officially audited by external reviewers (263 firms). Longitudinal analyses were conducted, using the panel nature of the data to control for permanent unobserved firm heterogeneity. RESULTS: Our results showed that the PLS was directly associated with R&D investments. In contrast, its indirect impacts stemming from the influence on sales profit and cash flow were minimal and statistically nonsignificant. The gross impact of the PLS on R&D investments increased moving further from the enactment year; R&D investments were reduced by 18.3% to 25.8% in 2009-2010 (compared with before PLS implementation) in the firm fixed-effects model. We also found that such negative direct and gross impacts of the PLS on R&D investments were significant only in firms without newly developed chemical entities. CONCLUSION: Considering the gross negative impact of the PLS on R&D investments of pharmaceutical firms and the heterogeneous response of these firms by the R&D activities, governmental efforts of cost-containment may need to consider the spillover impact of the PLS on pharmaceutical innovation.
File Format	HTM / HTML
ISSN	01492918
Issue Number	7
Volume Number	35
e-ISSN	1879114X
Journal	Clinical Therapeutics
Language	English
Publisher	Elsevier
Publisher Date	2013-07-01
Publisher Place	United States
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Discipline Pharmacology Drug Discovery Economics Drug Industry Formularies As Topic Investments Research Cost Control Legislation & Jurisprudence Organization & Administration Humans Republic Of Korea Journal Article Research Support, Non-u.s. Gov't
Content Type	Text
Resource Type	Article
Subject	Pharmacology Pharmacology (medical)

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

Can open-source drug R&D repower pharmaceutical innovation?

The impact of mergers on pharmaceutical R&D.

Delays in new drug applications in Japan and industrial R&D strategies.

A decade of innovation in pharmaceutical R&D: the Chorus model.

India's patent ecosystem - encouraging strong patents or discouraging innovation?

Integrative knowledge management to enhance pharmaceutical R&D.

The case for entrepreneurship in R&D in the pharmaceutical industry.

Evaluation of similar biotherapeutic products: scientific and regulatory challenges.

Direct to consumer drug advertising is billion dollar business in US.

Analyses of direct and indirect impacts of a positive list system on pharmaceutical R&D investments.

Similar Documents

Can open-source drug R&D repower pharmaceutical innovation?

The impact of mergers on pharmaceutical R&D.

Delays in new drug applications in Japan and industrial R&D strategies.

A decade of innovation in pharmaceutical R&D: the Chorus model.

India's patent ecosystem - encouraging strong patents or discouraging innovation?

Integrative knowledge management to enhance pharmaceutical R&D.

The case for entrepreneurship in R&D in the pharmaceutical industry.

Evaluation of similar biotherapeutic products: scientific and regulatory challenges.

Direct to consumer drug advertising is billion dollar business in US.

Analyses of direct and indirect impacts of a positive list system on pharmaceutical R&D investments.