Risk sharing is becoming an increasingly popular instrument to regulate the price of new drugs. In the recent past, forms of risk-sharing agreements between the public regulator and the industry have been proposed and implemented, but their effects on price and profits are still controversial....

In the the recent past some forms of risk sharing agreements have been used in some countries in drug pricing. In this note we present a specific risk sharing agreement on effectiveness and show how such mechanism is going to affect the market in the long run. In particular, we will show how the...

In this article we analyse the problem of determining the price for new drugs in a market where a stringent budget constraint on public expenditure exists and we suggest an innovative methodology to set their prices. The market is characterised by asymmetry of information and a high proportion...

The market for innovative drugs is characterised by a high level of regulation, whose impact on the market is not neutral. Strict regulation may in fact adversely affect incentives to develop new and better products; on the other hand high prices may drive an unsustainable increase of healthcare...