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Commentary

Reducing Barriers to the Development of High Quality, Low Cost Medicines: A proposal for Reforming the Drug Approval Process
International Policy Network, 2-28-05

IPN argues that prescription drugs are expensive “because of a lack of competition in the drugs approval process. Lack of competition…has led to exceedingly high drug development costs combined with artificially low drug prices, obtained through price control legislation and legislation that eases the entry of generic products into the market, has caused lower levels of pharmaceutical research and development, innovation, and economic growth.”

In its place, IPN calls for “private drug certification bodies (DCBs)” which would “compete for assessment of the safety and efficiency of new dugs, and also grant final drug approval. The importance of regulation in maintaining clients and attracting new ones, the existence of a free press engaging in investigative journalism, and expected penalties through the legal system for corrupt and dangerous decisions..should be sufficient to establish a well-functioning market in drug approval.”



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