What happens when a government agency in charge of assessing the effectiveness of medical interventions crunches numbers and tells pharmaceutical companies their drugs are just too expensive? Sometimes, the government gets a better deal.
Twice last week, the much-feared National Institute for Health and Clinical Excellence (NICE) in England and Wales was a factor in drug […]

Biotechnology firms constitute a subsector of the larger pharmaceutical industry (“drug companies with needles,” we call them), but to date have been spared from the blood sport of American health punditry, pharma-bashing. While drug firms routinely are castigated for their sins, real and imagined, biotech firms have been appreciated as innovative and entrepreneurial startups (rather […]

At last policymakers and readers are being set straight that the prices of drugs are not related to the immense costs of research and development but to “what the market will bear,” as James Robinson put it in his Health Affairs Blog post last fall. Never mind that pharmaceutical executives told Congress and everyone else […]

In his post, Jamie Robinson has raised the specter of an upside-down world of setting prices for biomedical innovations based on cost. Before we examine his serious admonition to focus on value in pricing new biotechnology drugs, let’s walk down the other trail: the argument that drugs should be pricy because they cost so darn […]

What is the appropriate price for a biotechnology product? Jamie Robinson’s thoughtful post touches all the right bases in arguing that discussing the role of value in pricing is far preferable to discussing the cost of research, development and production.

The biotechnology industry has grounds for complaint. The research pipeline is disgorging breathtaking new treatments for cancer, rheumatoid arthritis, multiple sclerosis, and other once-intractable diseases. But instead of praise, or in addition to praise, the industry finds itself subjected to ever-louder criticism of its prices and earnings. America again seems to demand the best health […]