* By Ramesh Govindaraj, Michael R. Reich, and Karin Dumbaugh.

This chapter examines the prices of praziquantel in various market segments, and the production costs of praziquantel. The section on pricing traces changes in praziquantel prices over time, and presents data on: current prices at which praziquantel is purchased by bulk suppliers; prices obtained by developing countries through tenders; and prices at which the drug is sold by producers in the private market in developed and developing countries. The section on production costs discusses the costs of manufacturing praziquantel faced by the major producers, and their pricing strategies. The section also explores problems experienced by Bayer and E. Merck in competing in the international market with lower-priced producers, who have successfully used process patent laws to develop alternative (and much cheaper) processes for producing praziquantel.