Prescription Drugs: Companies Typically Charge More in the United States
Than in the United Kingdom (Letter Report, 01/12/94, GAO/HEHS-94-29).

Drug manufacturers charge 60 percent more for 77 commonly prescribed,
brand-name drugs in the United States than for the same medications in
the United Kingdom.  A total of 66 of the drugs were priced higher in
the United States than in the United Kingdom; 47 of these were priced
more than twice as high.  Most of the differences in prescription drug
prices between countries cannot be attributed to differences in
manufacturers' costs.  Instead, U.S.-U.K. drug price differences are
mainly due to the lack of regulatory constraints in the United States.
In the United Kingdom, the government health system--virtually the sole
payer for prescription drugs--has an agreement with drug manufacturers
that limits the profits that drug companies can earn on sales in the
British Isles.  Other factors may also work to lower drug prices in the
U.K.  Pharmaceutical information is more widely available in the United
Kingdom than in the United States, possibly enhancing price competition
among drug manufacturers in the United Kingdom. U.K. doctors receive
information on their own prescribing patterns and on the comparative
prices and efficacy of drugs.  The government can remove drugs from its
list of reimbursable products if the manufacturers' prices for those
drugs are considered excessive.  Wholesalers and retailers can import
brand-name drugs into the United Kingdom from elsewhere in Europe where
drugs are cheaper.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  HEHS-94-29
     TITLE:  Prescription Drugs: Companies Typically Charge More in the 
             United States Than in the United Kingdom
      DATE:  01/12/94
   SUBJECT:  Price regulation
             Pharmaceutical industry
             Drugs
             Pharmacological research
             Comparative analysis
             Cost analysis
             Federal regulations
             Health care cost control
             Price fixing
             Foreign governments
IDENTIFIER:  United Kingdom
             National Health Care Reform Initiative
             Clinton Health Care Plan
             Health Security Act
             
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