204 Colonial Penn Center
3641 Locust Walk
Philadelphia, PA 19104
Research Interests: biopharmaceuticals, health care, industrial organization, insurance, liability, medical malpractice
Links: CV
Patricia Danzon is the Celia Moh Professor at The Wharton School, University of Pennsylvania. Professor Danzon received a B.A. from Oxford University, England, and a Ph.D. in Economics from the University of Chicago. She has held faculty positions at Duke University and the University of Chicago.
Professor Danzon is an internationally recognized expert in the fields of economics of health care, the biopharmaceutical industry, and insurance. She is a member of the Institute of Medicine and the National Academy of Social Insurance, and a Research Associate at the National Bureau of Economic Research. She has served as a consultant to many governmental agencies, NGOs and private corporations in the US and internationally. Professor Danzon has served on the Board of Directors of Medarex, Inc., the Policy and Global Affairs Board of the National Academy of Sciences, and the Policy Board of the Office of Health Economics in London.
Professor Danzon has been an Associate Editor of the American Economic Review, the Journal of Health Economics and the International Journal of Health Care Finance and Economics. She has published widely in scholarly journals on a broad range of subjects related to health care, pharmaceuticals, biotechnology, insurance, and the economics of law. She co-edited the Handbook on the Economics of the Biopharmaceutical Industry (2012), for Oxford University Press. Selected publications include: “Exits from Vaccine Markets in the US: The Role of Competition vs. Regulation” (with N. Pereira), International J. of the Economics of Business 2011; “Setting Cost-Effectiveness Thresholds As A Means To Achieve Appropriate Drug Prices In Rich And Poor Countries” (with A. Towse and A. Mulcahy) Health Affairs 2011; “Drug Pricing and Value in Oncology” (with E. Taylor) The Oncologist 2010; “Productivity in Pharmaceutical-Biotechnology R&D: The Role of Experience and Alliances” (with S.Nicholson and N.Pereira) J. of Health Economics 2005; “Biotech-Pharma Alliances as a Signal of Asset and Firm Quality” (with S. Nicholson and J. McCulloch, J. of Business 2005.
Patricia M. Danzon, “Drug Pricing and Value in Oncology”. In Regulatory and Economic Aspects in Oncology, Recent Results in Cancer Research, edited by Evelyn Walter, (2019), pp. 153-167
Patricia M. Danzon (2018), Differential Pricing of Pharmaceuticals: Theory, Evidence and Emerging Issues, PharmacoEconomics, 36 (12), pp. 1395-1405. 10.1007/s40273-018-0696-4
Patricia M. Danzon (2018), Affordability Challenges to Value-Based Pricing: Mass Diseases, Orphan Diseases,and Cures, Value in Health, 21, pp. 252-257.
Patricia M. Danzon (2018), Objectives, Budgets, Thresholds, and Opportunity Costs – A Health Economics Approach: An ISPOR Special Task Force Report,.
Patricia M. Danzon (2016), Affordability and Accessibility to Medicines in EMs: Differential pricing is the solution, ISB Insight.
Patricia M. Danzon (2015), Pharmacy Benefit Management: Are Reporting Requirements Pro- or Anticompetitive?, International Journal of the Economics of Business, 22 (2), pp. 245-261.
Abstract: The market-based US healthcare system relies on pharmacy benefit managers (PBMs) to control pharmaceutical costs, in contrast to most other countries that regulate drug prices and access. Optimal structuring and regulation of PBM contracts pose significant agency challenges for private and public payers. However, recent reporting requirements for PBMs may be counterproductive and reflect the interests of competitors rather than customers.
Patricia M. Danzon (2014), Biopharmaceutical and Medical Equipment Industries, Economics of, In: Anthony J. Culyer (ed.), Encyclopedia of Health Economics, Vol 1. San Diego: Elsevier; 2014. pp. 77-85..
Abstract: PDF available upon request.
Patricia M. Danzon (2014), Pricing and Reimbursement of Biopharmaceuticals and Medical Devices in the USA, In: Anthony J. Culyer (ed.), Encyclopedia of Health Economics, Vol 3. San Diego: Elsevier; 2014. pp. 127-135..
Abstract: PDF available upon request.
Patricia M. Danzon (2014), Competition and Antitrust Issues in the Pharmaceutical Industry,.
Patricia M. Danzon, Andrew Mulcahy, Adrian Towse (2013), Pharmaceutical Pricing in Emerging Markets: Effects of Income, Competition, and Procurement, Health Economics .
Abstract: This paper analyzes determinants of ex-manufacturer prices for originator and generic drugs across countries. We focus on drugs to treat HIV/AIDS, TB, and malaria in middle and low-income countries (MLICs), with robustness checks to other therapeutic categories and the full income range of countries. We examine the effects of per capita income, income dispersion, competition from originator and generic substitutes, and whether the drugs are sold to retail pharmacies versus tendered procurement by non-government organizations. The cross-national income elasticity of prices is 0.27 across the full income range of countries but is 0.0–0.10 between MLICs, implying that drugs are least affordable relative to income in the lowest income countries. Within-country income inequality contributes to relatively high prices in MLICs. Although generics are priced roughly 30% lower than originators on average, the variance is large. Additional generic competitors only weakly affect prices, plausibly because generic quality uncertainty leads to competition on brand rather than price. Tendered procurement that imposes quality standards attracts multinational generic suppliers and significantly reduces prices of originator and generic drugs, compared with their respective prices to retail pharmacies. ©2013 The Authors. Health Economics Published by John Wiley & Sons Ltd.
This course examines the structure of health care systems in different countries, focusing on financing, reimbursement, delivery systems and adoption of new technologies. We study the relative roles of private sector and public sector insurance and providers, and the effect of system design on cost, quality, efficiency and equity of medical services. Some issues we address are normative: Which systems and which public/private sector mixes are better at achieving efficiency and equity? Other issues are positive: How do these different systems deal with tough choices, such as decisions about new technologies? Our main focus is on the systems in four large, prototypical OECD countries--Germany, Canada, Japan, and the United Kingdom--and then look at other countries with interesting systems- including Italy, Chile, Singapore, Brazil, China and India. We draw lessons for the U.S. from foreign experience and vice versa.
This course explores the key phases of the pharmaceutical and biotechnology product lifecycle. The product journey begins in the lab where scientists explore a vast array of compounds against diseases (therapeutic targets). Compounds that perform best enter the capital-intensive clinical trial phase aimed at assessing the product’s safety and efficacy. In parallel, regulatory agencies guide and govern these trials and ultimately decide which products are approved for use in patients. Once approved, launched, and priced, products face many dynamic market forces including competitors trying to steal share, government and private payers placing downward pressure on price, regulatory agencies controlling what manufacturers can and cannot say about their products, generic manufacturers challenging existing patents, and finally patients and physicians who behave both rationally and irrationally when deciding which product to use. While the course perspective is global in nature, the emphasis is on the U.S., the largest and most profitable market. In addition, we will delve into the world of biotech start-ups from company creation and financing, to how they make decisions which compounds to advance. We will also explore how large pharma views the biotech industry to bolster their existing pipelines and drive shareholder value. Through case studies, readings, guest speakers, and in-class exercises, students will learn concepts and analytical frameworks and acquire the tools and skills necessary to become the future leaders of the pharmaceutical and biotech industry.
This course examines the structure of health care systems in different countries, focusing on financing, reimbursement, delivery systems and adoption of new technologies. We study the relative roles of private sector and public sector insurance and providers, and the effect of system design on cost, quality, efficiency and equity of medical services. Some issues we address are normative: Which systems and which public/private sector mixes are better at achieving efficiency and equity? Other issues are positive: How do these different systems deal with the tough choices, such as decisions about new technologies? Our focus first on the systems in four large, prototypical OECD countries- Germany, Canada, Japan, and the United Kingdom -and then look at other developed and emerging countries with interesting systems - including Italy, Chile, Singapore, Brazil, China and India. We will draw lessons for the U.S. from foreign experience and vice versa.
This course explores the key phases of the pharmaceutical and biotechnology product lifecycle. The product journey begins in the lab where scientists explore a vast array of compounds against diseases (therapeutic targets). Compounds that perform best enter the capital-intensive clinical trial phase aimed at assessing the product’s safety and efficacy. In parallel, regulatory agencies guide and govern these trials and ultimately decide which products are approved for use in patients. Once approved, launched, and priced, products face many dynamic market forces including competitors trying to steal share, government and private payers placing downward pressure on price, regulatory agencies controlling what manufacturers can and cannot say about their products, generic manufacturers challenging existing patents, and finally patients and physicians who behave both rationally and irrationally when deciding which product to use. While the course perspective is global in nature, the emphasis is on the U.S., the largest and most profitable market. In addition, we will delve into the world of biotech start-ups from company creation and financing, to how they make decisions which compounds to advance. We will also explore how large pharma views the biotech industry to bolster their existing pipelines and drive shareholder value. Through case studies, readings, guest speakers, and in-class exercises, students will learn concepts and analytical frameworks and acquire the tools and skills necessary to become the future leaders of the pharmaceutical and biotech industry.
HCMG 8900-001: This course examines issues related to the Services Sector of the health care industry. For those interested in management, investing, or banking in the health care industry, the services sector will likely be the largest and most dynamic sector within all of health care. We will study key management issues related to a number of different health care services businesses with a focus on common challenges related to reimbursement, regulatory, margin, growth, and competitive issues. We will look at a number of different businesses and subsectors that may have been unfamiliar to students prior to taking the course. We will make extensive use of outside speakers, many of whom are true industry leaders within different sectors of the health care services industry. Speakers will address the current management issues they face in running their businesses as well as discuss the career decisions and leadership styles that enables them to reach the top of their profession. Students will be asked to develop a plan to both buy out and manage a specific health care services business of their choosing and will present their final plans to a panel of leading Health Care Private Equity investors who will evaluate their analysis. Prerequisites: HCMG 8410. Health Care Management MBA majors only
Arranged with members of the Faculty of the Health Care Systems Department. For further information contact the Department office, Room 204, Colonial Penn Center, 3641 Locust Walk, 898-6861.
The federal government’s move to switch to value-based pricing of drugs for one category of public health plans could potentially have far-reaching effects, say experts.…Read More
Knowledge at Wharton - 5/18/2016