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Pricing and patents of HIV/AIDS drugs in developing countries

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Abstract:

This article provides empirical evidence on the impact of patents on drug prices across developing countries. It uses sales data on human immunodeficiency virus (HIV)/acquired immuno deficiency syndrome (AIDS) drugs in a sample of 34 low- and middle-income countries between 1995 and mid-2000. The main findings are that patents do shift drug prices up, drug prices are correlated to per capita income levels and drug firms follow a skimming strategy when pricing new HIV/AIDS drugs. That is, there is across country and intertemporal price discrimination in the global drug markets.

Document Type: Research Article

DOI: https://doi.org/10.1080/00036840500438954

Affiliations: University of Barcelona, 08034 Barcelona, Spain

Publication date: 2007-03-01

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