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Wednesday, November 19, 2014

OECD about the competition issues in the distribution of pharma products - from February 2014 
Key findings from the discussion include:
  1. Policy-makers and enforcers need to understand the distinctive economic features of the pharmaceuticals sector thoroughly to be able to intervene in this sector.
  2. Better enforcement of regulation and of competition law, more consumer information, and greater control over the incentives provided by manufacturers to doctors could improve outcomes in the distribution of pharmaceuticals in less developed countries.
  3. Mechanisms used to regulate drug prices can have varying effects on competition. Competition authorities are well placed to help guide the choice of the most appropriate ones.
  4. Drug price regulation and limited patent length are not sufficient to ensure vigorous competition between originators and generics. Competition, public cost-efficiency and private affordability can be further fostered by measures to promote generics.
  5. Forward integration by manufacturers and backward integration by pharmacy chains are changing the traditional structure of the pharmaceutical supply chain and are raising new competition issues.
  6. The extensive historic regulation of the retail pharmacy sector in many countries should be assessed considering its impact on consumer welfare.

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