Analyzing Trends of Price and Quantity Variation and Market Competition in Antidiabetes Drug
Date Issued
2009
Date
2009
Author(s)
Huang, Vicky Wei-Hsuen
Abstract
Objectives：To describe the trend and to decompose antidiabetes drug spending in Taiwan between 2004 and 2006. Also, to examine how the market react associated with pharmaceutical price adjustment on September 1st, 2005. ethod：By analysis data obtained from Taiwan National Health Insurance Research Database (NHRID), this study shows changes in antidiabetes drug utilization for 4 drug categories: single-source brand-name drugs, multiple-source brand-name drugs, BA/BE generic drugs and generic drugs. According to anatomical therapeutic chemical (ATC) classification system group, the study further applied to Consumer Price Index (CPI) to explain pharmaceutical price index (PPI) and total spending growth was disaggrated into price, volume (expressed in Defined Daily Dose), and mix effect factors. esult：Antidiabetes drug expenditure in Taiwan grew from $NT 0.55 billion in 2004 to $NT 0.65 billion in 2006, equivalent to 7.28 % annual growth rate in amount base and 8.10% in DDD base. Set year 2004 as a baseline and choosing top 90% sales and DU90% drug item for calculating PPI, and the result is antidiabetes drug’s PPI in year 2005 is 1.07% and 2006 is 3.66%. The primary divers of this expenditure growth were treatment expansion, and substitution. Since the generic-to-brand price ratio is relatively high in Taiwan, which create an incentive for healthcare institutes to prescribe more generics in order to receive a higher profit margin, BA/BE generic drugs are gradually taken over the market. The pharmaceutical price adjustment action by the Bureau has great influence to the market; in particular, the generic substation became more active in regional and area hospitals. onclusion：Findings suggest the main driving force behind the increase in drug spending was increased volume of drugs prescribed.
Subjects
antidiabetes drug
pharmaceutical expenditure
price and quantity variation
SDGs
Type
thesis
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