Drug research is incredibly expensive and it’s questionable how good Big Pharma’s IRRs even are.
Every other country piggybacks off of American innovation. Negotiating down drug prices would lead to less global innovation limiting society’s best chance to improve longevity.
Per Tyler Cowen in his book Big Business:
He has also presented evidence that two-thirds of the life expectancy boost for elderly Americans over the period 1996–2003 was due to prescription drugs (0.41–0.47 years out of 0.6 years total increase).
I understand R&D and failed drugs. Why is it multiples more expensive in the US? Why charge all other counties so much less?
Drug research is incredibly expensive and it’s questionable how good Big Pharma’s IRRs even are.
Every other country piggybacks off of American innovation. Negotiating down drug prices would lead to less global innovation limiting society’s best chance to improve longevity.
Per Tyler Cowen in his book Big Business:
He has also presented evidence that two-thirds of the life expectancy boost for elderly Americans over the period 1996–2003 was due to prescription drugs (0.41–0.47 years out of 0.6 years total increase).
Data on Big Pharma IRR (pre-pandemic):
https://endpts.com/pharmas-broken-business-model-an-industry-on-the-brink-of-terminal-decline/?utm_medium=email&utm_campaign=461%20Thursday%20050318%20Mercks%20Alzheimers%20study%20raises%20fears%20for%20PhIII%20pipeline%20Another%20snap%20OK%20for%20lung%20cancer&utm_content=461%20Thursday%20050318%20Mercks%20Alzheimers%20study%20raises%20fears%20for%20PhIII%20pipeline%20Another%20snap%20OK%20for%20lung%20cancer+CID_7c3ddea2d547d0c359647b43221d5baf&utm_source=ENDPOINTS%20emails&utm_term=Part%201%20of%20this%20blog