ECON256 Study Guide - Midterm Guide: Prescription Drug, Generic Drug, Bioequivalence
19 Nov 2017
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Document Summary
Therapeutically, prescription drugs are becoming an ever-more-important input to health production. Drugs are used to treat a growing array of conditions for which no treatment was previously available, and which previously required major surgery. Drugs are also used prophylactically for an array of preventable health conditions (ex. It is undertaken by large, multinational, for-profit companies. (r&d in pharma represents 10% of all r&d industrial spending in canada). Costs are not trivial, massive fixed/sunk costs involved. Risky many chemicals do not make it to market. The special nature of research as an economic activity and acknowledge it as an economic commodity. The strategic challenges in regulating an industry that moves investments across borders with ease. The increasing calls for policy coordination among countries, most notably the pressure for international harmonization of patent policies through international trade agreements. Brand-name drug: new drug that has been produced and patented by a drug company.
