Tag Archives: Big Pharma

R&D Costs For Pharmaceutical Companies Do Not Explain Elevated US Drug Prices

The pharmaceutical industry often explains that the higher prices they charge in the US provide them with the funds they need to conduct their high-risk research. This claim is empirically testable.

March 7, 2017

Memo To The President: The Pharmaceutical Monopoly Adjustment Act Of 2017

Extra monopolies have caused US consumers to pay higher prices for medicines for longer periods of time while making the pharmaceutical industry far more profitable than any other industry. The next president and Congress should take several key steps to roll back costly, unnecessary monopolies.

September 13, 2016

FDA Sanctions Off-Label Drug Promotion

Heightened constitutional protection of commercial speech in the health care arena has opened up opportunities for off-label promotion without threat of liability. The recent settlement between the FDA and Amarin Corporation is the most recent example of this trend.

July 19, 2016

Insurers Can Reduce Drug Prices, If Policymakers Let Them

Whilst decrying rapid increases in drug spending and prices, elected officials have actually made it increasingly difficult for insurers to do anything about it. Insurers want to constrain drug companies' pricing power, however numerous policies enacted in the name of facilitating patient...

July 14, 2016

Government Appropriation Of Breakthrough Drug Patent Rights Would Deter Biopharmaceutical R&D And Innovation

Section 1498 allows the government eminent domain-type powers to circumvent an inventor’s patent exclusivity rights in exchange for “reasonable and entire compensation.” While some argue this could be used to drive down drug prices, however this may cause adverse consequences for R&D incentives...

June 20, 2016

‘Value Creation’ And ‘Value Shifting’ In Health Care

The public backlash to the pricing of high-value specialty drugs suggests American society is not comfortable with the idea of value pricing in health care. At its extreme, value pricing can extract enormous prices from seriously stricken patients or their insurers, because better health and...

June 1, 2016

Is High Prescription Drug Spending Becoming Our New Normal?

Spending on specialty medicines was responsible for 73 percent of overall medicine spending growth over the past five years. It's time to stop viewing high priced drugs as isolated incidents, but rather we should consider what we can do about it.

May 17, 2016

Would A Wider Variety Of Vial Sizes Reduce The Cost Of Chemotherapy? Not Likely

Addressing the high prices of patented pharmaceuticals is a pragmatically daunting and politically fraught task. Requiring drug companies to offer drugs in multiple vial sizes, however, is unlikely to reduce the costs that matter to patients and payers.

May 11, 2016

Value Pricing For Drugs: Whose Value, What Price?

Prescription drug spending in Medicare Parts B and D was 14 percent of total Medicare spending in 2014, and CMS actuaries believe that it will shift more towards specialty drugs. Getting drug pricing “right” through “value pricing” or some other mechanism is therefore an important public policy goal.

March 28, 2016

Breaking Good? The Arc Of Antitrust Policy In The Health Sector

A Symposium On Health Law. It appears that 2016 will follow 2015 as another year of massive consolidation in the health care sector. Against this backdrop, it is timely and revealing to examine the current state and trajectory of antitrust law as it intersects and shapes health care policy.

March 15, 2016