Innovation–Innovation Tradeoffs in Drug Pricing
Authors: Rachel E. Sachs, Austin B. Frakt
Journal: Annals of Internal Medicine (2016)

Ideas and Opinions20 December 2016Innovation–Innovation Tradeoffs in Drug PricingRachel E. Sachs, JD, MPH and Austin B. Frakt, PhDRachel E. Sachs, JD, MPHFrom Washington University School of Law, St. Louis, Missouri, and the Veterans Affairs Boston Healthcare System, Jamaica Plain, Massachusetts.Search for more papers by this author and Austin B. Frakt, PhDFrom Washington University School of Law, St. Louis, Missouri, and the Veterans Affairs Boston Healthcare System, Jamaica Plain, Massachusetts.Search for more papers by this authorAuthor, Article, and Disclosure Informationhttps://doi.org/10.7326/M16-2167 SectionsAboutFull TextPDF ToolsAdd to favoritesDownload CitationsTrack CitationsPermissions ShareFacebookTwitterLinkedInRedditEmail The uproar about the price of the EpiPen is the latest episode in the controversy over drug pricing that extends back decades. However, the more recent, sustained public outrage and media attention have occurred during a presidential election cycle, which places greater focus on policy prescriptions. A common concern with proposed regulation of drug markets is the extent to which it would reduce the rate of drug innovation and decrease the number of new drugs in the marketplace. But another important consideration is less frequently voiced: How would (or could) policy affect the composition of innovation—the types of drugs that ...References1. Frank RG, Newhouse JP. Should drug prices be negotiated under part D of Medicare? And if so, how? Health Aff (Millwood). 2008;27:33-43. [PMID: 18180478] doi:10.1377/hlthaff.27.1.33 CrossrefMedlineGoogle Scholar2. Kaplan T. Hillary Clinton unveils plan to address ‘excessive' increases in drug prices. The New York Times. 2 September 2016. Accessed at www.nytimes.com/2016/09/03/us/politics/hillary-clinton-epipen-mylan.html on 29 September 2016. Google Scholar3. Pierson R. Pfizer CEO says Clinton plan to curb drug prices would hurt consumers. Reuters. 8 September 2016. Accessed at www.reuters.com/article/us-pfizer-ceo-clinton-idUSKCN11E2N7 on 29 September 2016. Google Scholar4. Budish E, Roin BN, Williams H. Do firms underinvest in long-term research? Evidence from cancer clinical trials. Am Econ Rev. 2015;105:2044-85. [PMID: 26345455] doi:10.1257/aer.20131176 CrossrefMedlineGoogle Scholar5. Frakt AB. To reduce the cost of drugs, look to Europe. The New York Times. 19 October 2015. Accessed at www.nytimes.com/2015/10/20/upshot/to-reduce-the-cost-of-drugs-look-to-europe.html?_r=0 on 29 September 2016. Google Scholar6. Sachs RE. Prizing insurance: prescription drug insurance as innovation incentive. Harv J Law Technol. 2016. [Epub ahead of print]. doi:10.2139/ssrn.2767182 CrossrefGoogle Scholar7. Frakt AB. We can't all have it all: the economic limits of pharmaceutical innovation. JAMA. 2016;315:1936-7. [PMID: 27163973] doi:10.1001/jama.2016.5047 CrossrefMedlineGoogle Scholar Author, Article, and Disclosure InformationAffiliations: From Washington University School of Law, St. Louis, Missouri, and the Veterans Affairs Boston Healthcare System, Jamaica Plain, Massachusetts.Disclaimer: The views expressed are those of the authors and do not necessarily reflect the positions or policies of Washington University or the U.S. Department of Veterans.Disclosures: Authors have disclosed no conflicts of interest. Forms can be viewed at www.acponline.org/authors/icmje/ConflictOfInterestForms.do?msNum=M16-2167.Corresponding Author: Rachel E. Sachs, JD, MPH, Washington University School of Law, Campus Box 1120, One Brookings Drive, St. Louis, MO 63130; e-mail, [email protected]edu.Current Author Addresses: Ms. Sachs: Washington University School of Law, Campus Box 1120, One Brookings Drive, St. Louis, MO 63130.Dr. Frakt: Veterans Affairs Boston Healthcare System, 150 South Huntington Avenue, Jamaica Plain, MA 02130.Author Contributions: Conception and design: R.E. Sachs, A.B. Frakt.Drafting of the article: R.E. Sachs, A.B. Frakt.Critical revision of the article for important intellectual content: R.E. Sachs, A.B. Frakt.Final approval of the article: R.E. Sachs, A.B. Frakt.This article was published at www.annals.org on 11 October 2016. PreviousarticleNextarticle Advertisement FiguresReferencesRelatedDetails Metrics Cited byDrug Reimbursement Regulation in 6 Peer Countries 20 December 2016Volume 165, Issue 12Page: 871-872KeywordsDrug policyDrug pricesDrug regulationDrug research and developmentDrug therapyDrugsForecastingMedicareMotivationVeteran care ePublished: 11 October 2016 Issue Published: 20 December 2016 Copyright & PermissionsCopyright © 2016 by American College of Physicians. All Rights Reserved.PDF downloadLoading ...