Financial risk of the biotech industry versus the pharmaceutical industry.

Abstract:

:The biotech industry now accounts for a substantial and growing proportion of total R&D spending on new medicines. However, compared with the pharmaceutical industry, the biotech industry is financially fragile. This article illustrates the financial fragility of the biotech and pharmaceutical industries in the US and the implications of this fragility for the effects that government regulation could have on biotech firms. Graphical analysis and statistical tests were used to show how the biotech industry differs from the pharmaceutical industry. The two industries' characteristics were measured and compared, along with various measures of firms' financial risk and sensitivity to government regulation. Data from firms' financial statements provided accounting-based measures and firms' stock returns applied to a multifactor asset pricing model provided financial market measures. The biotech industry was by far the most research-intensive industry in the US, averaging 38% R&D intensity (ratio of R&D spending to total firm assets) over the past 25 years, compared with an average of 25% for the pharmaceutical industry and 3% for all other industries. Biotech firms exhibited lower and more volatile profits and higher market-related and size-related risk, and they suffered more negative stock returns in response to threatened government price regulation. Biotech firms' financial risks increase their costs of capital and make them more sensitive to government regulations that affect their financial prospects. As biotech products grow to represent a larger share of new medicines, general stock market conditions and government regulations could have a greater impact on the level of innovation of new medicines.

authors

Golec J,Vernon JA

doi

10.1007/BF03256149

subject

Has Abstract

pub_date

2009-01-01 00:00:00

pages

155-65

issue

3

eissn

1175-5652

issn

1179-1896

pii

3

journal_volume

7

pub_type

杂志文章
  • Phase I/II Clinical Trial-Based Early Economic Evaluation of Acalabrutinib for Relapsed Chronic Lymphocytic Leukaemia.

    abstract:OBJECTIVES:The objective of this study was to construct an early economic evaluation for acalabrutinib for relapsed chronic lymphocytic leukaemia (CLL) to assist early reimbursement decision making. Scenarios were assessed to find the relative impact of critical parameters on incremental costs and quality-adjusted life...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-019-00496-1

    authors: Vreman RA,Geenen JW,Hövels AM,Goettsch WG,Leufkens HGM,Al MJ

    更新日期:2019-12-01 00:00:00

  • Supplier-induced demand: reconsidering the theories and new Australian evidence.

    abstract::This paper reconsiders the evidence and several of the key arguments associated with the theory of supplier-induced demand (SID). It proposes a new theory to explain how ethical behaviour is consistent with SID. The purpose of a theory of demand and one criterion for the evaluation of a theory is the provision of a pl...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章,评审

    doi:10.2165/00148365-200605020-00003

    authors: Richardson JR,Peacock SJ

    更新日期:2006-01-01 00:00:00

  • Organization and estimated patient-borne costs of oral anticoagulation therapy in Italy: results from a survey.

    abstract:BACKGROUND:The management of the large patient population in Italy receiving long-term oral anticoagulation therapy (OAT) poses organizational challenges that are traditionally approached with a centralized procedure, relying on hospital-based clinics and/or GPs. However, the availability of near-patient testing device...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.2165/11313890-000000000-00000

    authors: Pradelli L,Iannazzo S,Zaniolo O,Botrugno P

    更新日期:2010-01-01 00:00:00

  • Implications of a data-driven approach to treatment with growth hormone in children with growth hormone deficiency and Turner syndrome.

    abstract:BACKGROUND:Response to growth hormone (GH) therapy may vary between individual patients. Therefore the use of GH in children should be closely monitored to avoid over, under, or ineffective treatment regimens. The treatment response can be evaluated using growth prediction models. In an effort to improve the accuracy o...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-013-0030-4

    authors: Kaspers S,Ranke MB,Han D,Loftus J,Wollmann H,Lindberg A,Roelants M,Kleintjens J

    更新日期:2013-06-01 00:00:00

  • Curos™ Disinfection Caps for the Prevention of Infection When Using Needleless Connectors: A NICE Medical Technologies Guidance.

    abstract::Central line-associated bloodstream infections (CLABSIs) are primary, laboratory confirmed bloodstream infections in patients with a central line within 48 h of symptom onset. Catheter-related bloodstream infection (CRBSI) is a more specific term used when the cause of infection has been confirmed by catheter tip cult...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章,评审

    doi:10.1007/s40258-020-00602-8

    authors: O'Connell S,Dale M,Morgan H,Carter K,Carolan-Rees G

    更新日期:2020-08-05 00:00:00

  • Cost Analysis of Tuberculosis Diagnosis in Cambodia with and without Xpert® MTB/RIF for People Living with HIV/AIDS and People with Presumptive Multidrug-resistant Tuberculosis.

    abstract:BACKGROUND:The Xpert® MTB/RIF (Xpert) test has been shown to be effective and cost-effective for diagnosing tuberculosis (TB) under conditions with high HIV prevalence and HIV-TB co-infection but less is known about Xpert's cost in low HIV prevalence settings. Cambodia, a country with low HIV prevalence (0.7%), high TB...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-018-0397-3

    authors: Pallas SW,Courey M,Hy C,Killam WP,Warren D,Moore B

    更新日期:2018-08-01 00:00:00

  • The impact of inclusion criteria in health economic assessments.

    abstract::The debate surrounding whether the findings of efficacy studies are applicable to real-world treatment situations is ongoing. The issue of lack of applicability due to a lack of clinical heterogeneity could be addressed by employing less restrictive inclusion criteria. Given that health economic assessments based on c...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.2165/11590150-000000000-00000

    authors: Richter A,Thieda P,Thaler K,Gartlehner G

    更新日期:2011-05-01 00:00:00

  • Financial Impact of Alternative Pricing Benchmarks for Physician-Dispensed Drugs in the California Workers' Compensation System.

    abstract:BACKGROUND:Pricing drugs in the California Workers' Compensation System (CAWCS) has become more difficult as there are increasingly fewer drugs listed in the Medi-Cal primary fee schedule, which is used as the source for CAWCS drug prices. This presents a challenge of providing timely and accurate CAWCS reimbursement. ...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-018-0442-2

    authors: Wilson L,Turkistani F,Tran DM,Huang W,Lin TK

    更新日期:2019-04-01 00:00:00

  • Economic analysis of thrombo inCode, a clinical-genetic function for assessing the risk of venous thromboembolism.

    abstract:BACKGROUND:Patients with venous thromboembolism (VTE) commonly have an underlying genetic predisposition. However, genetic tests nowadays in use have very low sensitivity for identifying subjects at risk of VTE. Thrombo inCode(®) is a new genetic tool that has demonstrated very good sensitivity, thanks to very good cov...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-015-0153-x

    authors: Rubio-Terrés C,Soria JM,Morange PE,Souto JC,Suchon P,Mateo J,Saut N,Rubio-Rodríguez D,Sala J,Gracia A,Pich S,Salas E

    更新日期:2015-04-01 00:00:00

  • Socioeconomic Disparities in Unmet Need for Student Mental Health Services in Higher Education.

    abstract:BACKGROUND:Mental health problems are highly prevalent among college students in many countries. However, evidence suggests that many at-risk students do not receive professional help. OBJECTIVE:We aimed to understand which students are most likely to have unmet need for mental health services. Given increasing and wi...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-019-00529-9

    authors: Cullinan J,Walsh S,Flannery D

    更新日期:2020-04-01 00:00:00

  • The Cost Effectiveness of Maintenance Schedules Following Pulmonary Rehabilitation in Patients with Chronic Obstructive Pulmonary Disease: An Economic Evaluation Alongside a Randomised Controlled Trial.

    abstract:BACKGROUND:Chronic obstructive pulmonary disease (COPD) affects approximately 3 million people in the UK. An 8-week pulmonary rehabilitation (PR) course is recommended under current guidelines. However, studies show that initial benefits diminish over time. OBJECTIVE:We present here an economic evaluation conducted al...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章,随机对照试验

    doi:10.1007/s40258-015-0199-9

    authors: Burns DK,Wilson EC,Browne P,Olive S,Clark A,Galey P,Dix E,Woodhouse H,Robinson S,Wilson A

    更新日期:2016-02-01 00:00:00

  • Virtual Touch™ Quantification to Diagnose and Monitor Liver Fibrosis in Hepatitis B and Hepatitis C: A NICE Medical Technology Guidance.

    abstract::Virtual Touch™ Quantification (VTq) is a software application used with Siemens Acuson ultrasound scanners to assess the stiffness of liver tissue. The National Institute for Health and Care Excellence (NICE) Medical Technologies Advisory Committee (MTAC) selected VTq for evaluation and invited the company to submit c...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章,评审

    doi:10.1007/s40258-016-0277-7

    authors: Summers JA,Radhakrishnan M,Morris E,Chalkidou A,Rua T,Patel A,McMillan V,Douiri A,Wang Y,Ayis S,Higgins J,Keevil S,Lewis C,Peacock J

    更新日期:2017-04-01 00:00:00

  • Listening to the decision makers: sustainability of PBMA in Alberta.

    abstract:BACKGROUND:Decision makers within the Calgary Health Region adopted and applied programme budgeting and marginal analysis (PBMA) for priority-setting activity across major service portfolios within the Region. METHODS:Seventeen in-depth qualitative interviews were conducted with senior managers and clinicians to gain ...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.2165/00148365-200403030-00005

    authors: Mitton C,Patten S,Donaldson C

    更新日期:2004-01-01 00:00:00

  • Mental health: A Particular Challenge Confronting Policy Makers and Economists.

    abstract::The first objective of this paper is to expound the particular challenge posed by the occurrence of inconsistency in the expression of preferences by mental health patients to both economists and policy makers. Since this difficulty cannot be resolved, the second aim of the paper is to identify agents who may be count...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-019-00479-2

    authors: Zweifel P

    更新日期:2020-04-01 00:00:00

  • Burning a hole in the budget: tobacco spending and its crowd-out of other goods.

    abstract::Smoking is an expensive habit. Smoking households spend, on average, more than $US1000 annually on cigarettes. When a family member quits, in addition to the former smoker's improved long-term health, families benefit because savings from reduced cigarette expenditures can be allocated to other goods. For households i...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.2165/00148365-200403040-00009

    authors: Busch SH,Jofre-Bonet M,Falba TA,Sindelar JL

    更新日期:2004-01-01 00:00:00

  • Cost effectiveness of self-monitoring of blood glucose (SMBG) for patients with type 2 diabetes and not on insulin: impact of modelling assumptions on recent Canadian findings.

    abstract:BACKGROUND:Canadian patients, healthcare providers and payers share interest in assessing the value of self-monitoring of blood glucose (SMBG) for individuals with type 2 diabetes but not on insulin. Using the UKPDS (UK Prospective Diabetes Study) model, the Canadian Optimal Prescribing and Utilization Service (COMPUS)...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.2165/11594270-000000000-00000

    authors: Tunis SL

    更新日期:2011-11-01 00:00:00

  • Does Insurance Status Influence a Patient's Hospital Charge?

    abstract:BACKGROUND:There is obscurity regarding how US hospitals determine patients' charges. Whether insurance status influences a patient's hospital charge has not been explored. OBJECTIVE:The objective of this study was to determine whether hospitals charge patients differently based on their insurance status. METHODS:Thi...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-017-0308-z

    authors: Woodworth L,Romano PS,Holmes JF

    更新日期:2017-06-01 00:00:00

  • Factors Influencing the Cost-Effectiveness Outcomes of HPV Vaccination and Screening Interventions in Low-to-Middle-Income Countries (LMICs): A Systematic Review.

    abstract:BACKGROUND:Cervical cancer ranks fourth amongst the commonest malignancies worldwide and the second most prevalent cancer afflicting women in low-to-middle income countries (LMICs), hence, of great public health importance. LMICs are the most affected regions as evidenced by their high prevalence of the disease. Mortal...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章,评审

    doi:10.1007/s40258-020-00576-7

    authors: Okeah BO,Ridyard CH

    更新日期:2020-10-01 00:00:00

  • U.S. and International In-Hospital Costs of Extracorporeal Membrane Oxygenation: a Systematic Review.

    abstract:CONTEXT:The in-hospital costs of extracorporeal membrane oxygenation (ECMO) have not been well established. OBJECTIVE:To evaluate the in-hospital costs of ECMO technology in both US and non-US settings for all patient types. DATA SOURCES:Systematic review of English-language articles, using the PubMed, Embase, Web of...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章,评审

    doi:10.1007/s40258-015-0170-9

    authors: Harvey MJ,Gaies MG,Prosser LA

    更新日期:2015-08-01 00:00:00

  • Current and future economic burden of osteoporosis in New Zealand.

    abstract:BACKGROUND:Osteoporosis is recognized as a serious health condition in developed as well as developing countries. There are no accurate estimates of the extent of the burden of osteoporosis in New Zealand. The purpose of this study was to estimate the economic burden of osteoporosis in New Zealand using data from inter...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.2165/11531500-000000000-00000

    authors: Brown P,McNeill R,Leung W,Radwan E,Willingale J

    更新日期:2011-03-01 00:00:00

  • Evaluating the Cost Effectiveness of a Suicide Prevention Campaign Implemented in Ontario, Canada.

    abstract:BACKGROUND:Although suicide-prevention campaigns have been implemented in numerous countries, Canada has yet to implement a strategy nationally. This is the first study to examine the cost utility of the implementation of a multidimensional suicide-prevention program that combines several interventions over a 50-year t...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-019-00511-5

    authors: Lebenbaum M,Cheng J,de Oliveira C,Kurdyak P,Zaheer J,Hancock-Howard R,Coyte PC

    更新日期:2020-04-01 00:00:00

  • Stated Uptake of Physical Activity Rewards Programmes Among Active and Insufficiently Active Full-Time Employees.

    abstract:BACKGROUND:Employers are increasingly relying on rewards programmes in an effort to promote greater levels of activity among employees; however, if enrolment in these programmes is dominated by active employees, then they are unlikely to be a good use of resources. OBJECTIVE:This study uses a stated-preference survey ...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-017-0327-9

    authors: Ozdemir S,Bilger M,Finkelstein EA

    更新日期:2017-10-01 00:00:00

  • Economic Evaluations of Guideline-Based Care for Chronic Wounds: a Systematic Review.

    abstract:OBJECTIVES:The aim of this study was to review all published economic evaluations of guideline-based care for chronic wounds and to assess how useful these studies are for decision making in health services. METHODS:Embase, PubMed, Scopus, Health Technology Assessment (HTA) and National Health Service Economic Evaluat...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-018-0403-9

    authors: Cheng Q,Graves N,Pacella RE

    更新日期:2018-10-01 00:00:00

  • Association Between Medicare's Mandatory Hospital Value-Based Purchasing Program and Cost Inefficiency.

    abstract:BACKGROUND:The Patient Protection and Affordable Care Act instituted pay-for-performance programs, including Hospital Value-Based Purchasing (HVBP), designed to encourage hospital quality and efficiency. OBJECTIVE AND METHOD:While these programs have been evaluated with respect to their implications for care quality a...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-017-0357-3

    authors: Izón GM,Pardini CA

    更新日期:2018-02-01 00:00:00

  • Why does economic analysis in health care not get implemented more? Towards a greater understanding of the rules of the game and the costs of decision making.

    abstract::Despite recent initiatives across a number of countries to institutionalise the use of economic evaluation in the assessment of new technologies, the evidence suggests that, to date, the impact of economic analysis on health sector decision making in practice has been low. This paper proposes that incentive compatibil...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章,评审

    doi:

    authors: Jan S

    更新日期:2003-01-01 00:00:00

  • Genetic health technology and economic evaluation: a critical review.

    abstract::The aim of the review is to establish whether, on the basis of previous published evidence, current accepted guidance for health economic evaluation needs to be adapted to evaluate healthcare based on use of genetic information. Online literature search strategies were designed (using PubMed and the NHS Economic Evalu...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章,评审

    doi:10.2165/00148365-200605010-00004

    authors: Jarrett J,Mugford M

    更新日期:2006-01-01 00:00:00

  • The influence of bonus payments to doctors on hospital revenue: results of a quasi-experimental study.

    abstract::There is wide consensus that the ways in which providers are reimbursed by third parties will affect their behaviour and, hence, the efficient use of limited resources and the performance of health systems. However, there seems to be little evidence on how payment to hospital-based doctors affects hospital performance...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:

    authors: Liu X,Mills A

    更新日期:2003-01-01 00:00:00

  • Reducing smoking prevalence in Australian prisons: a review of policy options.

    abstract::Smoking of tobacco products is a major public health challenge in prison settings in most countries. Although tobacco use was tolerated by custodial authorities for many decades, the overwhelming evidence of the adverse public health effects of tobacco on both the smokers and those in the vicinity of exhaled or passiv...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章,评审

    doi:

    authors: Awofeso N

    更新日期:2002-01-01 00:00:00

  • The Role of Physician Recommendations and Public Policy in Human Papillomavirus Vaccinations.

    abstract:BACKGROUND:Immunization rates for human papillomavirus (HPV) infections remain low among teenagers despite strong evidence of the effectiveness of vaccines. Physician recommendations of the vaccine are far from universal. Several states have enacted policies that mandate HPV vaccination or distribute educational materi...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-016-0225-6

    authors: Moghtaderi A,Adams S

    更新日期:2016-06-01 00:00:00

  • The Cost and Outcome Effectiveness of Total Hip Replacement: Technique Choice and Volume-Output Effects Matter.

    abstract:BACKGROUND:Total hip replacement (THR) must be managed in a more sustainable manner. More cost-effective surgical techniques and the centralization/regionalization of services are two solutions. The former requires an assessment of newer minimally invasive and muscle-sparing surgical techniques. The latter necessitates...

    journal_title:Applied health economics and health policy

    pub_type: 杂志文章

    doi:10.1007/s40258-016-0260-3

    authors: Goldstein JP,Babikian GM,Rana AJ,Mackenzie JA,Millar A

    更新日期:2016-12-01 00:00:00