Global Drug Discovery: Europe Is Ahead

Light, Donald W.

doi:10.1377/hlthaff.28.5.w969

Cited by 30 publications

(18 citation statements)

References 10 publications

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“…One corollary of these empirical studies is that the United States could be paying a disproportionately high share of global pharmaceutical R&D (McClellan, 2003), although this has been challenged elsewhere (Light and Lexchin, 2005;Light, 2009).…”

Section: Introductionmentioning

confidence: 99%

Determinants of branded prescription medicine prices in OECD countries

Kanavos

Vandoros

2011

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: This paper investigates the determinants of the prices of branded prescription medicines across different regulatory settings and health care systems, taking into account their launch date, patent status, market dynamics and the regulatory context in which they diffuse. By using volume-weighted price indices, this paper analyzes price levels for a basket of prescription medicines and their differences in 15 OECD countries, including the United States and key European countries, the impact of distribution margins and generic entry on public prices and to what extent innovation, by means of introducing newer classes of medicines, contributes to price formation across countries. In doing so, the paper seeks to understand the factors that contribute to the existing differences in prices across countries, whether at an ex-factory or a retail level. The evidence shows that retail prices for branded prescription medicines in the United States are higher than those in key European and other OECD countries, but not as high as widely thought. Large differences in prices are mainly observed at an ex-factory level, but these are not the prices that consumers and payers pay. Cross-country differences in retail prices are actually not as high as expected and, when controlling for exchange rates, these differences can be even smaller. Product age has a significant effect on prices in all settings after having controlled for other factors. Price convergence is observed across countries for newer prescription medicines compared with older medicines. There is no evidence that originator brand prices fall after generic entry in the United States, a phenomenon known as the 'generics paradox'. Finally, distribution and taxes are important determinants of retail prices in several of the study countries. To the extent that remuneration of the distribution chain and taxation are directly and proportionately linked to product prices this is likely to persist over time.

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Section: Introductionmentioning

confidence: 99%

Determinants of branded prescription medicine prices in OECD countries

Kanavos

Vandoros

2011

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“…[2][3][4][5] Generally, NMEs are considered to be chemically novel drugs and biologics that have not been previously marketed in the United States. The pace of NME approvals since 2000 has been sluggish, raising questions about the state of innovation in the pharmaceutical industry.…”

mentioning

confidence: 99%

An Improved Approach To Measuring Drug Innovation Finds Steady Rates Of First-In-Class Pharmaceuticals, 1987–2011

Lanthier

Miller

Nardinelli³

et al. 2013

Health Affairs

118

115

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For more than a decade, industry analysts and policy makers have raised concerns about declining pharmaceutical innovation, citing declining numbers of new molecular entities (NMEs) approved in the United States each year. Yet there is little consensus on whether this is the best measure of "innovation." We examined NME approvals during 1987-2011 and propose the three distinct subcategories of NMEs--first-in-class, advance-in-class, and addition-to-class--to provide more nuanced and informative insights into underlying trends. We found that trends in NME approvals were largely driven by addition-to-class, or "me too," drug approvals, while first-in-class approvals remained fairly steady over the study period. Moreover, the higher proportion of first-in-class drug approvals over the most recent decade is an encouraging sign of the health of the industry as a whole.

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“…Most OECD countries also spend more of their healthcare budgets on drugs than does the United States 13. Trump’s economic advisers fail to report that dollar for dollar, European researchers have developed more first-in-class and global drugs than US researchers 14. European investment in pharmaceutical research and development increased by 88% between 2000 and 2015 15…”

Section: Us System Failurementioning

confidence: 99%