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July 30, 2021    

The Role of Rebates in the Pharmaceutical Industry

This Toolkit is brought to you by AHLA's Antitrust Practice Group.
  • July 30, 2021
  • Christopher Stomberg , NERA Economic Consulting

Rebates offered by drug companies lie at the heart of the long-standing debate over drug prices. They are typically designed to align the incentives of buyers and sellers and are often an integral element of complex contracts. It is also common for rebates to be shrouded in secrecy as they are generally considered competitively sensitive information. Rebates are nevertheless central to an understanding of prices and competition in the pharmaceutical industry. This toolkit discusses where and why rebates arise in the pharmaceutical industry and some of the key features of these often poorly understood financial flows.


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