The drug price management models in major countries in the world can be divided into four categories: Category 1: direct pricing of drugs. It is divided into two types: one is direct pricing based on drug production costs, efficacy, safety and other factors. This method is mainly adopted by Italy, Spain, France, Japan, Switzerland, Australia, India, Romania, Brazil and other countries. It is characterized by a deep degree of price intervention and very little corporate autonomy. The other is to set the price directly after calculating the average price based on the actual market price levels in neighboring countries. The main countries that adopt this method are the Netherlands, Canada, etc. These countries generally rely on imported drugs and have very few domestically produced drugs, so they adopt this method. Category 2: Establish reference prices. The price of a certain drug in the same efficacy group is used as the reference price for reimbursement of each drug in the group. The price exceeding this price must be paid by the patient. Countries that adopt this pricing method include Germany, Sweden, Denmark, New Zealand, Colombia, etc. This method takes into account the quality differences of similar drugs and gives consumers more choices. Manufacturers also have certain freedom in pricing, which can be based on market demand and the characteristics of the product itself. Find a more reasonable price positioning above the reimbursement price. Category 3: Indirect control of drug prices by controlling drug production profit levels. This method is mainly used in the UK. The characteristic of this method is that it is easy for the government to manage; the disadvantage is that if the profit margin control is too strict, it will not be conducive to encouraging the enthusiasm of drug manufacturers. Category 4: Do not directly set drug prices. The representative country is the United States. The complete medical insurance system in the United States is an important guarantee for its implementation. Although drug prices are not controlled by the government, private insurance institutions essentially replace the government's functions and intervene in drug prices. Although this approach increases the patient's payment burden, it also greatly encourages manufacturing companies to research and develop new drugs. So from 1975 to 1994, 45% of the world's 152 new drugs came from the United States. During the rapid development of biotechnology in the 1990s, 80% of the 150 biotechnology patents issued in the United States in 1995 came from this country. The drug price management models in major countries in the world can be divided into four categories: Category 1: direct pricing of drugs. It is divided into two types: one is direct pricing based on drug production costs, efficacy, safety and other factors. This method is mainly adopted by Italy, Spain, France, Japan, Switzerland, Australia, India, Romania, Brazil and other countries. It is characterized by a deep degree of price intervention and very little corporate autonomy. The other is to set the price directly after calculating the average price based on the actual market price levels in neighboring countries. The main countries that adopt this method are the Netherlands, Canada, etc. These countries generally rely on imported drugs and have very few domestically produced drugs, so they adopt this method. Category 2: Establish reference prices. The price of a certain drug in the same efficacy group is used as the reference price for reimbursement of each drug in the group. The price exceeding this price must be paid by the patient. Countries that adopt this pricing method include Germany, Sweden, Denmark, New Zealand, Colombia, etc. This method takes into account the quality differences of similar drugs and gives consumers more choices. Manufacturers also have certain freedom in pricing, which can be based on market demand and the characteristics of the product itself. Find a more reasonable price positioning above the reimbursement price. Category 3: Indirectly controlling drug prices by controlling drug production profits. This method is mainly used in the UK. The characteristic of this method is that it is easy for the government to manage; the disadvantage is that if the profit margin control is too strict, it will not be conducive to encouraging the enthusiasm of drug manufacturers. Category 4: Do not directly set drug prices. The representative country is the United States. The complete medical insurance system in the United States is an important guarantee for its implementation. Although drug prices are not controlled by the government, private insurance institutions essentially replace the government's functions and intervene in drug prices. Although this approach increases the patient's payment burden, it also greatly encourages manufacturing companies to research and develop new drugs. So from 1975 to 1994, 45% of the world's 152 new drugs came from the United States.
During the rapid development of biotechnology in the 1990s, 80% of the 150 biotechnology patents issued in the United States in 1995 came from this country.