Sharif University of Technology Scientia Iranica 1026-3098 Articles in Press 2024 10 13 Developing a pricing model for brand-generic medicines 23708 10.24200/sci.2024.63217.8293 EN Fereshte Ghamami Faculty of Industrial & Systems Engineering, Tarbiat Modares University, Tehran, Iran Seyed Hessamedin Zegordi Faculty of Industrial & Systems Engineering, Tarbiat Modares University, Tehran, Iran Journal Article 2023 10 07 The pharmaceutical sector's pricing impacts healthcare costs and services significantly. Improper medicine pricing profoundly affects public health and healthcare services. Pricing is a key factor in the profitability of the pharmaceutical supply chain. The optimal supply chain maximizes satisfaction and aligns with economic and social goals. The main challenge for the pharmaceutical supply chain is balancing pricing with drug quality and innovation. Stakeholder satisfaction in pricing negotiations has declined in recent years. Pharmaceutical manufacturers face pressure due to inappropriate pricing, competition, and legal restrictions. Unilateral stress on one component affects the entire chain's performance and industry development.IRIran's pharmaceutical industry has embraced branding to support manufacturers and industry growth. This paper provides a model of Iran's pharmaceutical supply chain, focusing on domestic brand generics. Using game theory, optimal wholesale and retail prices were calculated in a competitive market setting to achieve maximum profit under three scenarios. The optimal price of the brand-generic product is about 300% higher than the price of the generic product. The positive impact of brand-generic supply chain coordination on customer surplus and social welfare is 10% and 45%. Subsidies impact the optimal prices by 3-5% reduction, customer surplus improves 3%, and social welfare significantly increases by 43%. https://scientiairanica.sharif.edu/article_23708_b3f2a6b3e119aaa5a1326802e7b49403.pdf