Healthcare Economist June 7, 2023
According to a paper by Garrison and Towse (2023) in Health Affairs Forefront the answer is ‘no’. I agree with them. Here is the rationale:
…this request for R&D cost information reflects a fundamental misunderstanding of the economics of the regulated US and global pharmaceutical marketplace. Writing in this journal in 2004 on the pros and cons of alternative approaches for Medicare drug pricing, Professor Joseph P. Newhouse said: “Large drug companies have many products, and allocating joint costs across those products is arbitrary. … companies must cover the R&D costs of their unsuccessful drugs or go out of business, so reimbursing only those costs that can be directly associated with drugs on the market seems pointless.” And more...
Today's Sponsors
Today's Sponsor