Drug Importation

How can we make drugs more affordable without sacrificing future cures? To a large extent, the current system works fairly well already to make most of the drugs that Americans take affordable. And that’s because of our robust generics market. Around 90% of prescriptions filled each year are for generics ...

Do price controls affect which drugs patients have access to and how soon? They absolutely do. Just look at the situation in Europe. For years, drug companies have been choosing to withhold certain medicines from European markets rather than accept the price constraints imposed by governments there. As a result, ...

What role do intellectual property laws play in encouraging innovation? They are absolutely essential. IP protections like patents reward those who succeed in creating new medicines and ushering them through the regulatory approval process. They do this by guaranteeing that the IP rights holder behind a new drug will have ...

What kinds of policies helped the US surpass Great Britain to become the world’s center of pharmaceutical innovation? I think it was a combination of shrewd reforms on the part of the United States, and self-destructive reforms on the part of Europe and other developed nations. In the 1970s, Europe ...

Whether it is Sanders vilifying pharmaceutical companies or Trump’s emphasis on imposing price controls, they both allege that drug spending is a primary driver of the nation’s rising healthcare costs. Even a cursory look at the data demonstrates their focus is misplaced. Let’s start with the national health expenditure data ...

The U.S. Food and Drug Administration just announced plans to help states and Indian tribes purchase certain prescription drugs from Canada, where brand-name medicines tend to be cheaper because the government caps their price. The new guidance is part of a larger Trump administration effort to cut drug prices for ...

Table 1: PBM Fees and Rebates Can Exceed International Prescription Medicine Prices by As Much As 900% I previously highlighted how estimated rebates and fees PBMs receive for 10 commonly used brand medicines far exceed the total prices of those medicines in eight OECD countries (see Table 1). For example, ...

Earlier this month, President Donald Trump signed what he called “one of the most consequential Executive Orders in our Country’s history.” The order is essentially an updated version of his administration’s 2020 “Most Favored Nation” policy. It directs pharmaceutical companies to tie the U.S. prices of their drugs to the ...

Last week, President Donald Trump revived one of the most ill-conceived health policy ideas of his first term. Via a new executive order, he’s directed his administration to deliver “most-favored-nation prescription drug pricing to American patients.” The idea is to bring other developed countries’ lower drug prices to the United ...