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Volume 9
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10.1080/20016689.2020.1849984
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Journal of Market Access & Health Policy (JMAHP) is published by MDPI from Volume 12 Issue 1 (2024). Previous articles were published by another publisher in Open Access under a CC-BY (or CC-BY-NC-ND) licence, and they are hosted by MDPI on mdpi.com as a courtesy and upon agreement with Taylor & Francis.
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Article

The Impact of Patent Expiry on Drug Prices: Insights from the Dutch Market

by
Simon van der Schans
1,2,*,†,
Gert T. Vondeling
3,†,
Qi Cao
1,4,
Simon van der Pol
1,
Sipke Visser
5,
Maarten J. Postma
1,4,6 and
Mark H. Rozenbaum
7
1
Unit of Global Health, Department of Health Sciences, University Medical Centre Groningen, Groningen, The Netherlands
2
Fair Medicine Foundation, Amsterdam, The Netherlands
3
Department of Global Market Access & Pricing, Daiichi Sankyo, München, Germany
4
Unit of PharmacoTherapy, -epidemiology & -economics (PTE2), Department of Pharmacy, University of Groningen, Groningen, The Netherlands
5
Data Scientia, Groningen, The Netherlands
6
Department of Economics, Econometrics & Finance, University of Groningen, Faculty of Economics & Business, Groningen, The Netherlands
7
Department of Patient & Health Impact, Pfizer, Inc, Capelle A/d IJssel, The Netherlands
*
Author to whom correspondence should be addressed.
†
These authors contributed equally to this work.
J. Mark. Access Health Policy 2021, 9(1), 1849984; https://doi.org/10.1080/20016689.2020.1849984
Submission received: 5 June 2020 / Revised: 29 October 2020 / Accepted: 9 November 2020 / Published: 1 December 2020

Abstract

Background: Currently literature on the impact of patent expiry on drug prices is lacking. Objective: To determine the impact of patent expiration and generic entry on drug prices in the Netherlands. Methods: Prescription and price data from 1999 up to and including December 2016 were collected from two national databases. The overall price ratio of drugs prices up to 48 months after patent expiration was compared to the price in the month before expiry. Sub-analyses were performed to provide insights in generic uptake, length of market exclusivity and price development for originators and generics separately. Results: In total 250 drugs faced patent expiration during the study period. Forty-eight months after patent expiration the median price ratio decreased to 0.59 (IQR = 0.23–0.86) compared to the month prior patent expiry. Major differences in price developments were observed depending on the level of revenue prior to patent expiration and the time of patent expiration with ratios ranging from 0.08 (IQR = 0.07–0.16) to 0.81 (IQR = 0.62–0.97). Prior to patent expiry, the price decreased by 2.3% annually while having market exclusivity for 11.3 years on average. Conclusion: This study showed that the median drug price after patent expiration decreased by 41% after 4 years. The results of this study can be used to provide more reliable estimates on drug prices over its lifecycle and can be implemented in economic evaluations to inform the cost-effectiveness and long-term budget impact of new drugs.
Keywords: drug price; patent expiration; generic competition; cost-effectiveness; budget impact; the Netherlands drug price; patent expiration; generic competition; cost-effectiveness; budget impact; the Netherlands

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MDPI and ACS Style

van der Schans, S.; Vondeling, G.T.; Cao, Q.; van der Pol, S.; Visser, S.; Postma, M.J.; Rozenbaum, M.H. The Impact of Patent Expiry on Drug Prices: Insights from the Dutch Market. J. Mark. Access Health Policy 2021, 9, 1849984. https://doi.org/10.1080/20016689.2020.1849984

AMA Style

van der Schans S, Vondeling GT, Cao Q, van der Pol S, Visser S, Postma MJ, Rozenbaum MH. The Impact of Patent Expiry on Drug Prices: Insights from the Dutch Market. Journal of Market Access & Health Policy. 2021; 9(1):1849984. https://doi.org/10.1080/20016689.2020.1849984

Chicago/Turabian Style

van der Schans, Simon, Gert T. Vondeling, Qi Cao, Simon van der Pol, Sipke Visser, Maarten J. Postma, and Mark H. Rozenbaum. 2021. "The Impact of Patent Expiry on Drug Prices: Insights from the Dutch Market" Journal of Market Access & Health Policy 9, no. 1: 1849984. https://doi.org/10.1080/20016689.2020.1849984

APA Style

van der Schans, S., Vondeling, G. T., Cao, Q., van der Pol, S., Visser, S., Postma, M. J., & Rozenbaum, M. H. (2021). The Impact of Patent Expiry on Drug Prices: Insights from the Dutch Market. Journal of Market Access & Health Policy, 9(1), 1849984. https://doi.org/10.1080/20016689.2020.1849984

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