|Selected research from leading health care experts whose findings have a direct bearing on public policies effecting medical progress. Research is chosen based on its quality and relevance by the Medical Progress Today editorial staff.||
Explaining Pharmaceutical R & D Growth Rates at the Industry Level: New Perspectives and Insights
Some U.S. policy-makers and interest groups advocate adopting European-style price controls in order to limit the cost of prescription drugs. But what effect would price controls have on medical innovation? This study tracks pharmaceutical spending from 1952 to 2001 and finds that R & D investment rates closely track real drug prices. This suggests that any attempt to control drug prices will inevitably deter investment in future medical innovation. Indeed, the study finds that had the U.S. imposed drug price controls from 1980-2001, pharmaceutical spending on R & D would have been 30% lower and hundreds of new drugs would never have come to market as a result.
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