Diffusion of Pharmaceuticals: Cross-Country Evidence of Anti-TNF Drugs

35 Pages Posted: 18 Apr 2013

See all articles by Kurt Richard Brekke

Kurt Richard Brekke

Norwegian School of Economics (NHH) - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Dag Morten Dalen

BI Norwegian Business School - Department of Economics

Tor Helge Holmas

University of Bergen - Department of Economics

Date Written: March 28, 2013

Abstract

This paper studies the diffusion of biopharmaceuticals across European countries, focusing on anti-TNF drugs, which are used to treat autoimmune diseases (e.g., rheumatism, psoriasis). We use detailed sales information on the three brands Remicade, Enbrel and Humira for nine European countries covering the period from the fi…rst launch in 2000 until becoming blockbusters in 2009. Descriptive statistics reveal large variations across countries in per-capita consumption and price levels both overall and at brand level. We explore potential sources for the cross-country consumption differences by estimating several multivariate regression models. Our results show that large parts of the cross-country variation are explained by time-invariant country-speci…c factors (e.g., disease prevalence, demographics, health care system). We also fi…nd that differences in income (GDP per capita) and health spending (share of GDP) explain the cross-country variation in consumption, while relative price differences seem to have limited impact.

Keywords: Diffusion; pharmaceuticals; cross-country analysis

JEL Classification: I11; L13; O33

Suggested Citation

Brekke, Kurt Richard and Dalen, Dag Morten and Holmas, Tor Helge, Diffusion of Pharmaceuticals: Cross-Country Evidence of Anti-TNF Drugs (March 28, 2013). NHH Dept. of Economics Discussion Paper No. 07/2013, Available at SSRN: https://ssrn.com/abstract=2253114 or http://dx.doi.org/10.2139/ssrn.2253114

Kurt Richard Brekke (Contact Author)

Norwegian School of Economics (NHH) - Department of Economics ( email )

Helleveien 30
N-5035 Bergen
Norway

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Dag Morten Dalen

BI Norwegian Business School - Department of Economics ( email )

N-0442 Oslo
Norway
+47 46410774 (Phone)

Tor Helge Holmas

University of Bergen - Department of Economics ( email )

Fosswinckelsgt. 6
N-5007 Bergen, 5007
Norway
+47 55589238 (Phone)
+47 55589210 (Fax)

HOME PAGE: http://www.econ.uib.no/stab/torHelge.html

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