OBR Daily Commentary

forumImage

Prescription Drug Costs Driven By Manufacturer Price Hikes, Not Innovation

(NPR/Shots blog) Jan 7, 2019 - The skyrocketing cost of many prescription drugs in the U.S. can be blamed primarily on price increases, not expensive new therapies or improvements in existing medications as drug companies frequently claim, a new study shows.

Read Article arrow

William McGivney, PhD (Posted: January 10, 2019)

quotes

ONLY Invested Over $100 Billion in R and D
A quote in the summary article provided belies the financial investments and contributions of the biopharma industry to the advancement of science and the resultant delivery of new drugs and biologics to the marketplace and, thus, to patients; (even some agents that are clearly game-changers like immuno-therapeutics). The quote is as follows:
“Research and Development is only about 17% of total spending in most large drug companies”.
Dare I say that the use of the adverb “ONLY” might evince a “bias” against the biopharma industry no matter how many billions of dollars that biopharma companies invest in biomedical research (basic and mainly clinical). Being generous let’s look at 2017 for the zenith of federal funding to all 27 of the Institutes, Centers, and Offices of the NIH. Budgeted funding was $33.1 billion. Trying to be scientific and methodologically sound, I looked for the spending by biopharma companies in the same year, 2017, on Research and Development. In an online article by John Carroll in Endpoints on April 24, 2017, the author delineates by company budgeted amounts for R and D in 2017. Being a fan of brevity and “get to the point”, I had to go down the list to ONLY company # 4 to best the NIH’s paltry (synonym for ONLY?) $33 billion by $8 billion with a sum for the 4 companies of $41 Billion invested. If one were to go through the list of the top 15, one would tally ONLY $90 billion invested in R and D. I do believe that there are many more biopharma companies out there to tally but I stopped at ONLY 15.
To what extent would a reduction in drug prices contribute to a proportional (e.g., percent of 17%) reduction in R and D dollar investments? One can ONLY guesstimate!

quotes

Reply

Add Comment 1 Comment(s)

Meet the Editorial Board

Prostate Cancer
member photo
Tomasz M. Beer, MD, FACP

Professor of Medicine, Division of Hematology/Medical O...

Community Oncology
member photo
Dean Gesme, MD

FACP FACPE FASCO President, Minnesota Oncology...

Breast Cancer
member photo
Debu Tripathy, MD

Professor and Chair, Department of Breast Medical Oncol...

Lung Cancer
member photo
H. Jack West, MD

Medical Director, Thoracic Oncology Program, Swedish Ca...

Gastrointestinal Cancers
member photo
Howard S. Hochster, MD

Distinguished Professor of Medicine, Rutgers Robert Woo...

Radiation Oncology
member photo
Howard Sandler, MD, MS, FASTRO

Ronald H. Bloom Chair in Cancer Therapeutics
Pr...

Community Oncology
member photo
Jeff Patton, M.D.

CEO Tennessee Oncology...

Precision Medicine Section Editor
member photo
Jennifer Levin Carter, MD, MPH

Chief Medical Officer and Founder, N-of-One...

Financial Sector
member photo
Michael G. King Jr.

Managing Director and Senior Biotechnology Analyst...

Gastrointestinal Cancers
member photo
Richard Goldberg, MD

Director WVU Cancer Institute Director of Cancer Signa...

Editor-In-Chief
member photo
Robert A. Figlin, MD., FACP

Professor and Director, Division of Hematology Oncology...

Health Policy
member photo
Ted Okon

Executive Director Community Oncology Alliance...

Community Oncology
member photo
Thomas Marsland, MD

Vice President Integrated Community Oncology Network ...

Community Oncology
member photo
William Harwin MD

Florida Cancer Specialists President and Managing Part...

Health Policy
member photo
William McGivney, PhD

National Health Policy Expert...

Payer
member photo
Winston Wong, PharmD

President, W-Squared Group...