While there is no doubt biopharmaceutical manufacturers have made important contributions to public health, it is imperative that policymakers have a comprehensive picture of the evidence surrounding industry claims to create policies that align drug prices with the clinical value they provide.
In this Drug Pricing Lab report, we developed three briefs to address PhRMA’s main talking points.
Pharmaceutical companies are private-sector corporations and act as such to maximize revenue and lower business costs, oftentimes at the expense of public health and budgets. Rather than uncritically accepting PhRMA’s talking points, policymakers need to understand, objectively, how the U.S. system “works”, which stakeholders are winning, and most importantly, how patients are losing. A new approach is urgently needed—with policies that incentivize true innovation by aligning drug prices with the actual value they provide to patients and society.
Read the full report here.
The first brief dispels the notion that innovation and R&D investment will fall precipitously if Congress takes action to rein in high drug prices.
The second brief evaluates R&D productivity, and points to potential areas where R&D spending could be decreased without a negative effect on innovation.
The third brief addresses the health outcomes that arguably should be the primary goal of this investment and innovation—and how the U.S. compares to other high-income countries.