Question 1

What is the average time period for the introduction of a new drug into market?

Accepted Answer

A)  2 years 
B)  5 years 
C)  8 years 
D)  9 years 
E)  12-15 years 
A)  2 years 
B)  5 years 
C)  8 years 
D)  9 years 
E)  12-15 years

Question 2

One of the common tasks for pharmacoeconomists employed by large pharmaceutical companies is performing a cost effectiveness study of a new drug.

Accepted Answer

A) True 
 B)False

Question 3

Costs structure in the pharmaceutical industry is largely characterized by fixed expenses which are proportional to output levels.

Accepted Answer

A) True 
 B)False

Question 4

Explain why R&D by surgeons in hospitals can be expected to lead to more process innovations than product innovations. Compare the regulation of surgeons' use of new surgical skills with the regulation of new drugs.

Accepted Answer

R&D in hospitals is undertaken at teachi

Question 5

Phase I of FDA testing involves human testing for efficacy of an Investigational New Drug (IND).

Accepted Answer

A) True 
 B)False

Question 6

On average, government-funded expenditures on prescription drugs are about $200 per person per year.

Accepted Answer

A) True 
 B)False

Question 7

What does the term "detailing" mean in the pharmaceutical industry?

Accepted Answer

A)  An exceptionally thorough cleaning, washing and precise coating process at the final stages of the production of each batch of pills, which will favorably show off all the details of the pill. 
B)  Detailing involves a representative of the pharmaceutical firm calling on an individual physician to set up a meeting, where the representative will discuss one or two products with the physician. 
C)  The process of developing a pill design (shape, color, engraving, and other artistic and decorative details). 
D)  Careful attention to every detail of the drug manufacturing process. 
E)  The requirement to the drug manufacturers to include the details of the drug side effects in journal and TV advertisements. 
A)  An exceptionally thorough cleaning, washing and precise coating process at the final stages of the production of each batch of pills, which will favorably show off all the details of the pill. 
B)  Detailing involves a representative of the pharmaceutical firm calling on an individual physician to set up a meeting, where the representative will discuss one or two products with the physician. 
C)  The process of developing a pill design (shape, color, engraving, and other artistic and decorative details). 
D)  Careful attention to every detail of the drug manufacturing process. 
E)  The requirement to the drug manufacturers to include the details of the drug side effects in journal and TV advertisements.

Question 8

Economies of scale are a common feature of R&D in the pharmaceutical industry.

Accepted Answer

A) True 
 B)False

Question 9

Many mail-order pharmacies these days are owned by PBMs. Addressing the concerns that such ownership might lead to a conflict of interest, the Federal Trade Commission (FTC) launched an investigation into this practice and published its report "Pharmacy Benefits Managers: Ownership of Mail-Order Pharmacies" in 2005. The report found, however, that there were no significant differences between the practices of the two types of mail-order pharmacies, including no significant differences in the use of generics between PBM-owned (35% of all dispensed drugs) vs. non-PBM owned (36% of all dispensed drugs) mail-order pharmacies. Discuss what could be a valid explanation behind this finding.

Accepted Answer

This finding suggests that PBM-owned mai

Question 10

The proportion of expenditures paid out of pocket for pharmaceuticals today is greater than the fraction of expenditures paid out of pocket for physician or hospital services.

Accepted Answer

A) True 
 B)False

What is the average time period for the introduction of a new drug into market?

One of the common tasks for pharmacoeconomists employed by large pharmaceutical companies is performing a cost effectiveness study of a new drug.

Costs structure in the pharmaceutical industry is largely characterized by fixed expenses which are proportional to output levels.

Explain why R&D by surgeons in hospitals can be expected to lead to more process innovations than product innovations. Compare the regulation of surgeons' use of new surgical skills with the regulation of new drugs.

Phase I of FDA testing involves human testing for efficacy of an Investigational New Drug (IND).

On average, government-funded expenditures on prescription drugs are about $200 per person per year.

What does the term "detailing" mean in the pharmaceutical industry?

Economies of scale are a common feature of R&D in the pharmaceutical industry.

The proportion of expenditures paid out of pocket for pharmaceuticals today is greater than the fraction of expenditures paid out of pocket for physician or hospital services.

Choices: Money, Medicine, and Health

Demand and Supply

Cost-Benefit and Cost-Effectiveness Analysis

Health Insurance: Financing Medical Care

Insurance Contracts and Managed Care

Physicians

Medical Education, Organization, and Business Practices

Hospitals

Management and Regulations of Hospital Costs

Long-Term Care

Financing and Ownership of Health Care Providers

Macroeconomics and Medical Care

The Role of Government and Public Goods

History, Demography, and the Growth of Modern Medicine

International Comparisons of Health and Health Expenditures

Economic Evaluation of Health Policy: The Patient Protection and Affordable Care Act of 2010

Value for Money in the Future of Health Care

Filters

Exam 11: Pharmaceuticals

What is the average time period for the introduction of a new drug into market?

One of the common tasks for pharmacoeconomists employed by large pharmaceutical companies is performing a cost effectiveness study of a new drug.

Costs structure in the pharmaceutical industry is largely characterized by fixed expenses which are proportional to output levels.

Explain why R&D by surgeons in hospitals can be expected to lead to more process innovations than product innovations. Compare the regulation of surgeons' use of new surgical skills with the regulation of new drugs.

Phase I of FDA testing involves human testing for efficacy of an Investigational New Drug (IND).

On average, government-funded expenditures on prescription drugs are about $200 per person per year.

What does the term "detailing" mean in the pharmaceutical industry?

Economies of scale are a common feature of R&D in the pharmaceutical industry.

The proportion of expenditures paid out of pocket for pharmaceuticals today is greater than the fraction of expenditures paid out of pocket for physician or hospital services.

Choices: Money, Medicine, and Health

Demand and Supply

Cost-Benefit and Cost-Effectiveness Analysis

Health Insurance: Financing Medical Care

Insurance Contracts and Managed Care

Physicians

Medical Education, Organization, and Business Practices

Hospitals

Management and Regulations of Hospital Costs

Long-Term Care

Financing and Ownership of Health Care Providers

Macroeconomics and Medical Care

The Role of Government and Public Goods

History, Demography, and the Growth of Modern Medicine

International Comparisons of Health and Health Expenditures

Economic Evaluation of Health Policy: The Patient Protection and Affordable Care Act of 2010

Value for Money in the Future of Health Care

Filters