J Health Econ. 2023 Jun 21;90:102779. doi: 10.1016/j.jhealeco.2023.102779. Online ahead of print.
ABSTRACT
This paper investigates the effect of scientific information from randomized controlled clinical trials (RCTs) on the demand for off-label uses of cancer drugs. This is a unique setting where demand for a drug for a specific use is observable both before and after the first RCT results are released. Using variation in the timing of RCTs across off-label uses of drugs, I find that demand responds asymmetrically to the trial results based on the statistical significance of the clinically relevant endpoint. When this endpoint is statistically significant, there is a large and immediate increase in demand. When this end point is not statistically significant, physicians are relatively slow to abandon use of the drug.
PMID:37352724 | DOI:10.1016/j.jhealeco.2023.102779
