There were a couple of great articles in JAMA Internal Medicine this week on cancer drug development and pricing.
The first, discussed in this NYTimes article, did a thorough job of tallying the total R&D cost to bring a new cancer drug to market. The study authors ended up with a significantly lower number than has been reported in the past.
“Following approval, the 10 drugs together brought in $67 billion, the researchers also concluded — a more than sevenfold return on investment. Nine out of 10 companies made money, but revenues varied enormously. One drug had not yet earned back its development costs.”
Continue reading Health Policy Updates: September 16 2017
I am giving my highest recommendation to Elizabeth Rosenthal’s new book on health care costs, An American Sickness. It was her reporting at the NYTimes several years ago that first got me interested in understanding (and controlling) the high costs of medical care that we have in this country.
Equally highly recommended is her interview with Terry Gross on NPR’s Fresh Air.
“What you see often now is when generic drugs come out … the price doesn’t go down to 20 percent of the branded price, it maybe goes down to 90 percent of the branded price. So we’re not getting what we should get from a really competitive market where we, the consumers, are making those choices.”
Continue reading Health Policy Updates: April 15 2017
An new public health paper in Health Affairs this week compared the effects of social health spending vs. medical spending on outcomes for several common illnesses such as heart attack and diabetes. The results add credence to the view that the social determinants of health may be more important than the medical system in keeping people health.
“We found that states with a higher ratio of social to health spending (calculated as the sum of social service spending and public health spending divided by the sum of Medicare spending and Medicaid spending) had significantly better subsequent health outcomes…”
Continue reading Health Policy Updates: May 28 2016