|Selected research from leading health care experts whose findings have a direct bearing on public policies effecting medical progress. Research is chosen based on its quality and relevance by the Medical Progress Today editorial staff.||
Pharmaceutical Price Controls and Entry Strategies
Increased access to medications is an important benefit of market systems - companies that can make a reasonable return on investment have powerful incentives to ensure that their products are widely accessible. On the other hand, price controls give companies disincentives to distribute medications and slow the diffusion of new medical technologies. This paper demonstrates how price controls have a large negative effect on the timing and launch of new drugs around the world. Drugs invented by firms in countries that rely on price controls will be available in fewer markets and will take longer to reach them than products that originate in countries without price controls.
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