Pharmaceutical Pricing

Description: This quiz is designed to assess your knowledge of Pharmaceutical Pricing.
Number of Questions: 15
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Which of the following is NOT a factor that influences pharmaceutical pricing?

  1. Cost of research and development

  2. Manufacturing costs

  3. Marketing and advertising expenses

  4. Government regulations


Correct Option: D
Explanation:

Government regulations do not directly influence pharmaceutical pricing. However, they can indirectly affect pricing by imposing certain requirements on pharmaceutical companies, such as the need to conduct clinical trials or obtain regulatory approval.

What is the term used to describe the difference between the price of a drug in one country and its price in another country?

  1. Price discrimination

  2. Price gouging

  3. Parallel trade

  4. Arbitrage


Correct Option: A
Explanation:

Price discrimination is the practice of charging different prices for the same product in different markets. This can occur when a pharmaceutical company charges a higher price for a drug in a country with a higher demand for the drug or when a company charges a lower price in a country with a lower demand for the drug.

What is the term used to describe the practice of selling a drug at a price that is significantly higher than its cost of production?

  1. Price gouging

  2. Price discrimination

  3. Parallel trade

  4. Arbitrage


Correct Option: A
Explanation:

Price gouging is the practice of selling a product at a price that is significantly higher than its cost of production. This can occur when a pharmaceutical company takes advantage of a sudden increase in demand for a drug, such as during a natural disaster or a public health emergency.

What is the term used to describe the practice of importing a drug from a country where it is sold at a lower price and then selling it in a country where it is sold at a higher price?

  1. Parallel trade

  2. Price discrimination

  3. Price gouging

  4. Arbitrage


Correct Option: A
Explanation:

Parallel trade is the practice of importing a drug from a country where it is sold at a lower price and then selling it in a country where it is sold at a higher price. This can occur when a pharmaceutical company charges a higher price for a drug in one country than it does in another country.

What is the term used to describe the practice of buying a drug in one country and then selling it in another country at a higher price?

  1. Arbitrage

  2. Price discrimination

  3. Price gouging

  4. Parallel trade


Correct Option: A
Explanation:

Arbitrage is the practice of buying a drug in one country and then selling it in another country at a higher price. This can occur when a pharmaceutical company charges a higher price for a drug in one country than it does in another country.

What is the term used to describe the practice of selling a drug at a price that is lower than its cost of production?

  1. Price discrimination

  2. Price gouging

  3. Parallel trade

  4. Below-cost pricing


Correct Option: D
Explanation:

Below-cost pricing is the practice of selling a drug at a price that is lower than its cost of production. This can occur when a pharmaceutical company is trying to gain market share or when a company is trying to compete with a generic drug.

What is the term used to describe the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing drug?

  1. Price discrimination

  2. Price gouging

  3. Parallel trade

  4. Competitive pricing


Correct Option: D
Explanation:

Competitive pricing is the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing drug. This can occur when a pharmaceutical company is trying to gain market share or when a company is trying to compete with a generic drug.

What is the term used to describe the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a brand-name drug?

  1. Price discrimination

  2. Price gouging

  3. Parallel trade

  4. Generic pricing


Correct Option: D
Explanation:

Generic pricing is the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a brand-name drug. This can occur when a pharmaceutical company is trying to gain market share or when a company is trying to compete with a brand-name drug.

What is the term used to describe the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing generic drug?

  1. Price discrimination

  2. Price gouging

  3. Parallel trade

  4. Follow-on pricing


Correct Option: D
Explanation:

Follow-on pricing is the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing generic drug. This can occur when a pharmaceutical company is trying to gain market share or when a company is trying to compete with a generic drug.

What is the term used to describe the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing follow-on drug?

  1. Price discrimination

  2. Price gouging

  3. Parallel trade

  4. Me-too pricing


Correct Option: D
Explanation:

Me-too pricing is the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing follow-on drug. This can occur when a pharmaceutical company is trying to gain market share or when a company is trying to compete with a follow-on drug.

What is the term used to describe the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing me-too drug?

  1. Price discrimination

  2. Price gouging

  3. Parallel trade

  4. Incremental pricing


Correct Option: D
Explanation:

Incremental pricing is the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing me-too drug. This can occur when a pharmaceutical company is trying to gain market share or when a company is trying to compete with a me-too drug.

What is the term used to describe the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing incremental drug?

  1. Price discrimination

  2. Price gouging

  3. Parallel trade

  4. Value-based pricing


Correct Option: D
Explanation:

Value-based pricing is the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing incremental drug. This can occur when a pharmaceutical company is trying to gain market share or when a company is trying to compete with an incremental drug.

What is the term used to describe the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing value-based drug?

  1. Price discrimination

  2. Price gouging

  3. Parallel trade

  4. Risk-sharing pricing


Correct Option: D
Explanation:

Risk-sharing pricing is the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing value-based drug. This can occur when a pharmaceutical company is trying to gain market share or when a company is trying to compete with a value-based drug.

What is the term used to describe the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing risk-sharing drug?

  1. Price discrimination

  2. Price gouging

  3. Parallel trade

  4. Outcome-based pricing


Correct Option: D
Explanation:

Outcome-based pricing is the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing risk-sharing drug. This can occur when a pharmaceutical company is trying to gain market share or when a company is trying to compete with a risk-sharing drug.

What is the term used to describe the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing outcome-based drug?

  1. Price discrimination

  2. Price gouging

  3. Parallel trade

  4. Performance-based pricing


Correct Option: D
Explanation:

Performance-based pricing is the practice of selling a drug at a price that is higher than its cost of production but lower than the price of a competing outcome-based drug. This can occur when a pharmaceutical company is trying to gain market share or when a company is trying to compete with an outcome-based drug.

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