The Link Between Drug Prices and Research on the Next Generation of Cures

The Link Between Drug Prices and Research on the Next Generation of Cures The Link Between Drug Prices and Research on the Next Generation of Cures JOE KENNEDY | SEPTEMBER 2019 Academic studies consistently show that a reduction in current drug revenues leads to a fall in future research and the number of new drug discoveries. [...] lead in life-sciences research delivers large benefits to the economy in the form of faster, more numerous breakthrough drugs and continued advances in existing therapies, as well as tens of thousands of high-paying jobs across the nation.54 This section reviews the academic literature on the strong link between drug prices and the future introduction of new drugs. [...] The main channel of prospective influence is the impact of pricing and reimbursement policies on the expected return on investment in R&D.”66 In fact the generation of large revenues is closely related to the amount of research an individual company does. [...] To estimate the latter, he looked at both changes in the number of patents with particular types of cancer in Canada and the United States, and the number of regimens and research papers devoted to that type of cancer. [...] The results showed the elasticity of the number of cancer patients to the number of chemotherapy regimens available to treat a specific type of cancer is 0.53.