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Perspectives and Achievements with Rational Pharmacotherapy Drug Industry and Rational Pharmacotherapy Teddy Hebo Larsen Chairman Danish Association of the Pharmaceutical Industry Effect (Adverse reaction x Price) What are the aims of rational pharmacotherapy? Savings, Optimum patient care or ” value for money”? ”And by our wisdom so have we progressed when few have too much and fewer have too little” ∆ Costs ∆ Effects The doctors dilemma • Maximisation of the efficacy of a therapy • Minimisation of the risk posed by the therapy • Regard for the patient’s right to choose • Regard for the economic consequences/minimising costs Ekelund, M. 2001 “Pharmaceuticals are highly specialized products, and individuals respond idiosyncratically to different drugs. Therefore individual consumers may not agree on the ranking of a given pharmaceutical in relation to others, although there is consensus over the general efficacy or therapeutic benefit of the drug. The individual reaction to a certain brand (e.g. with regard to the nature and intensity of its side effects) is often hard to predict ex ante. For this reason, pharmaceuticals are, to a high degree, experience goods whose benefits must be judged after consumption.” Johannesson and Lundin (2001) ”We also find that physician preferences measured as their prescription history, are important for the choice of drug. The effect of physician preferences is strongest among new patients, since for repeated prescriptions the effect of physician preferences is mitigated by patient habit formation that slows down the diffusion of new drugs”.