Posted by Michael Wonder on 20 Jun 2019
Drug prices and innovation
20 June 2019 - The crisis in drug pricing has reached global proportions.
According to a recent article in The Economist, “THESE DAYS it is hard to find a government that is not struggling with the high price of medicines. …[T]he unaffordability of medicines…[is at] the top of the global health agenda”.
The pricing crisis has emerged because of pharma’s success in treating debilitating diseases. After decades of research, despite staggering odds, the industry is making drugs that can deal with conditions like cystic fibrosis, cancer and hepatitis. However, high prices can limit access for patients.
Companies claim that new medicines are inherently expensive and high prices are necessary to foster innovation. Some industry observers argue that drug prices are so high that the government can lower them without impairing productivity; access must be the priority.
