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Analytical Models for Designing Pharmaceutical Contracts

management SCIENCE. Vol. 00, No. 0, Xxxxx 0000, pp. 000 000. INFORMS. doi issn 0025-1909 | eissn 1526-5501 | 00 | 0000 | 0001 c 0000 INFORMS. Analytical Models for Designing Pharmaceutical Contracts Van-Anh Truong, David Yao Department of Industrial Engineering and Operations Research, Columbia University, New York, NY 10027, We develop the first integrated Analytical framework to study contract and pricing strategies in the phar- maceutical industry. We demonstrate how this framework can be used to analyze optimal contract and pricing decisions for insurers and manufacturers, including recent pricing practices such as manufacturer's coupons and risk-sharing Contracts . We discuss the implications of these decisions for consumers, insurers, and manufacturers.

Author: Analytical Models for Designing Pharmaceutical Contracts Management Science 00(0), pp. 000{000, c 0000 INFORMS 3 that the strategy would be ine ective against preventing low prices of generic drugs to drain their

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