History shows that price controls can neuter a healthy domestic pharmaceutical industry. In the 1970s, Europe led the world in pharmaceutical innovation. It fell from that position only after embracing price controls across the continent. These policy decisions cleared the way for America’s dominance of the sector.
More than 4 in 5 Americans blame the pharmaceutical industry’s profits for the high prices of prescription drugs. It’s little wonder, then, that roughly the same share supports placing price controls on prescription drugs through Medicare.
The logic is straight out of Robin Hood. Our leaders should take from the “rich” drug companies and give to the “poor” patients.
This line of reasoning is at odds with what is happening in the pharmaceutical market. A new report from consulting firm IQVIA says drug companies have been spending a massive and growing portion of their revenue on inventing new medicines.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
Drug company profits don’t threaten lives; price controls do
Sally C. Pipes
History shows that price controls can neuter a healthy domestic pharmaceutical industry. In the 1970s, Europe led the world in pharmaceutical innovation. It fell from that position only after embracing price controls across the continent. These policy decisions cleared the way for America’s dominance of the sector.
More than 4 in 5 Americans blame the pharmaceutical industry’s profits for the high prices of prescription drugs. It’s little wonder, then, that roughly the same share supports placing price controls on prescription drugs through Medicare.
The logic is straight out of Robin Hood. Our leaders should take from the “rich” drug companies and give to the “poor” patients.
This line of reasoning is at odds with what is happening in the pharmaceutical market. A new report from consulting firm IQVIA says drug companies have been spending a massive and growing portion of their revenue on inventing new medicines.
Read the op-ed here.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.