Tag Archives: Big Pharma

Follow The Money: The Flow Of Funds In The Pharmaceutical Distribution System

Publicly traded companies in the pharmaceutical distribution system must disclose annual financial information to the SEC. Those reports provide some of the most reliable public information about how funds flow through the distribution system.

June 13, 2017

Debunking The Pharmaceutical Research ‘Free Rider’ Myth: A response To Yu, Helms, And Bach

The claim that “everyone gets a free ride off us,” pushed by pharmaceutical companies to the US public and policy makers, is simply not true. It has been made so often for so long that many hold it as an economic fact, even though no solid evidence is presented to back it up.

June 2, 2017

Drug Prices And Medical Innovation: A Response To Yu, Helms, and Bach

If US policy makers were to enact regulations that drive prices down significantly, many projects that now have positive expected returns would no longer be profitable. Current prices would be lower but so would the expected level of future innovation.

June 2, 2017

Scott Gottlieb And The Goldilocks Theory Of Bringing Change To The FDA

With the nomination of Dr. Scott Gottlieb to head the FDA headed to the Senate floor, we can expect another Goldilocks debate about whether today’s FDA is too lenient, too tough, or just right in reviewing new prescription drugs.

May 1, 2017

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