Becker's Healthcare January 9, 2025
Pharmaceutical companies merging are thought to increase drug prices, but research from Iowa City-based University of Iowa seems to dispel this theory when the mergers are between generic drugmakers.
Other studies have drawn a link between pharmaceutical mergers and higher drug prices, lower innovation and decreased competition. However, as the University of Iowa researchers pointed out, “large-sample rigorous analysis of the impact of mergers on drug prices is scarce.”
They examined 125 pharmaceutical mergers between 2007 and 2020 and, using data on Medicaid-covered drugs, found contrasting results. Highly innovative firms with brand-name therapies, such as Eli Lilly and Novo Nordisk,...
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