With Conservative Assumptions US Drug Prices Still In Excess of R&D Costs

Health Affairs Blog
August 1, 2017

Health Affairs Blog published two articles in response to Drug Pricing Lab’s original research article “R&D costs for pharmaceutical companies do not explain elevated US drug prices”. Donald W. Light presents the concern about perpetuating the “foreign free rider myth”, the claim that other nations’ R&D costs are paid for by the US. Grabowski and Manning are concerned for the future of the US market based system if the US were to adopt international prices. Dr. Peter Bach and Nancy Yu point back to the research, emphasizing that the original intent of the conservative R&D cost assumptions accounted for these concerns.

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