Posted by Michael Wonder on 15 Mar 2020
Mending the broken social contract for pharmaceutical pricing and innovation
13 March 2020 - The biopharmaceutical industry is under unprecedented assault by the public and politicians.
Hostility over launch prices for new drugs and post-launch price increases is broad and bipartisan, reflected in increasingly draconian legislative proposals and aggressive rebate payer negotiations.
The net price of drugs — that’s the list price minus rebates and other reductions — is being squeezed, and the pressure won’t let up. Industry revenues are increasingly derived from a smaller number of orphan and gene therapies with limited competition and from a few specialty blockbusters for chronic conditions that patients are reluctant to switch away from.
