Biopharmaceuticals in European hospitals: A comparative study of demand and reimbursement of innovative drugs

Pharmaceutical treatment are of growing importance in hospitals. Annual cost of pharmaceuticals in Norwegian hospitals has increased by 100 percent (in real terms) over a ten years period, and has by now reached 3 billion NOK per year. New and expensive d rugs have improved treatment of cancer, rheumatoid arthritis, and multiple sclerosis, which accounts for a large share of the increase in hospitals? pharmaceutical costs. TNF-alpha inhibitors represent one of the most important areas of biopharmaceutical s by sales, with three blockbuster products and annual global sales of 18 billion of US dollars in 2008. To date they represent the most important way to treat arthritis and other autoimmune diseases. Preliminary observations reveal that the market penetr ation of these three drugs vary substantially between European countries. In this project we will undertake empirical studies in order to identify explanations for these differences in treatment choices for patients with chronic diseases. In the project we collect information on the funding and reimbursement schemes for TNF-alpha inhibitors adopted in different European countries. Combining this survey with market data (prices and sales), we will investigate the importance of factors such as (1) funding and reimbursement schemes, (2) pharmaceutical prices, (3) presence of biopharmaceutical research, (4) income for TNF-alpha treatment choices.