Description:
This article examines six key issues facing the pharmaceuticals industry that concern the appropriateness and effectiveness of markets, quasi‐markets and regulatory intervention in the sector. The article shows the prevalence of confused thinking in this area, both on the part of lobbyists for the industry and their opponents. It is contended that allowing market forces to operate within a legal or regulatory framework that protects intellectual property rights, promotes innovation and facilitates price competition will produce more socially beneficial outcomes than direct state intervention in the market.