Fact Check: Time to Market for New Drugs in U.S. Versus Other Countries
Drug prices in the U.S. are highest among developed countries, effectively setting the upper bound for reference prices elsewhere.Download Report
Originally published on 10/11/2019 Drug Pricing Lab
Recent federal policy proposals, including H.R. 3 Lower Drug Costs Now Act of 2019, link Medicare payments for prescription drugs to prices paid in other countries. International price reference proposals are met with industry critique that this would inhibit patient access to drugs in the U.S. where the FDA process is faster and more comprehensive.
In this Drug Pricing Lab policy paper, we present a review of the literature and a more robust explanation that includes factors that contribute to company filing decisions such as country revenue and pricing potential. Implementing international reference pricing based on prices paid for in other high-income countries is unlikely to change the U.S.'s position as the leading country in drug pricing and revenue opportunity.
Read the full policy paper here.