The benefits of switching smoking cessation drugs to over-the-counter status.
This paper provides an analysis of the benefits to society from the conversion of nicotine replacement drugs (nicotine patches and gum) in 1996 from sale by prescription only in the United States to over-the-counter (OTC) sales. To estimate these benefits, we first estimate statistical demand functions for nicotine patches and gum. Second, we calculate the effects of OTC conversion on sales of each type of nicotine replacement drug. Third, we survey the literature on the effects of nicotine replacement drugs on total quits of cigarette smoking. Fourth, we survey the literature on the effects of quits achieved on expected lifespan, and on the estimated monetary value of longer lives from smoking cessation. Finally, we use all this evidence to calculate the value of the social benefits of the OTC conversion to the US. As a result of the OTC conversion, consumption of nicotine replacement drugs has increased substantially, by 78-92% for nicotine patches and 180% for nicotine gum. We estimate that the resulting increase in smoking cessation generated annual net social benefits of the order of magnitude of 1.8-2 billion dollars, based on conservative estimates both of the number of quits achieved and the value of added quality-adjusted life years from the reduced smoking.
Keeler
Theodore E
TE
Department of Economics, University of California, Berkeley 94720-3880, USA.
Hu
Teh-wei
TW
Keith
Alison
A
Manning
Richard
R
Marciniak
Martin D
MD
Ong
Michael
M
Sung
Hai-Yen
HY
D000279:Administration, Cutaneous; D000284:Administration, Oral; D003362:Cost-Benefit Analysis; D016527:Drug Costs; D011307:Drug Prescriptions / Q000191:economics* / Q000706:statistics & numerical data; D006301:Health Services Needs and Demand / Q000191:economics* / Q000706:statistics & numerical data; D006302:Health Services Research; D006801:Humans; D017059:Models, Econometric; D015999:Multivariate Analysis; D009538:Nicotine / Q000008:administration & dosage* / Q000191:economics; D004366:Nonprescription Drugs / Q000191:economics* / Q000627:therapeutic use; D019057:Quality-Adjusted Life Years; D012907:Smoking / Q000188:drug therapy*; D016540:Smoking Cessation / Q000191:economics* / Q000379:methods; D000074606:Smoking Prevention; D014481:United States; D026712:Value of Life / Q000191:economics
D004366:Nonprescription Drugs; D009538:Nicotine