Asian Journal Of Social Pharmacy

Abstract: Objective To study the reasonable pricing strategy to effectively reduce the risk of drug supply disruption. This paper studies the vertical competition between drug purchasers and pharmaceutical enterprises, and the horizontal competition between different pharmaceutical enterprises. Based on the wholesale price of drugs made by pharmaceutical enterprises, drug purchasers adopt different procurement strategies. Methods A multi-stage game model was used to analyze the collusion and competition between two drug procurement parties. Results and Conclusion (1) Enterprise B can choose the optimal game strategies according to the stability of enterprise A; (2) Two procurement parties should choose collusion when the risk of supply interruption is low; (3) Emergency dual sourcing strategy is better than single sourcing strategy; (4) The optimal procurement quantity is irrelevant to the monotonicity of the stability of enterprise A in Cournot game. Through numerical analysis, the optimal decisions of pharmaceutical enterprises and drug purchasers are obtained respectively.

Key words: drug, procurement with target quantity, multi-stage game model, sustainability