Effect of pharmaceutical innovation on longevity

Using data from 2006-2018 across 26 high-income countries, Lichtenberg et al. (2022) measures the relationship between pharmaceutical innovation and longevity. Innovation is measured by “mean vintage…of the drugs used to treat each disease in each country” where vintage is defined as the year of worldwide launch. For the U.S., the authors found that: …the diseases…

How reimbursement affects innovation

Below are some excerpts from seminal papers examining how changes in reimbursement or market size affect pharmaceutical innovation. Acemoglu and Lin (2004): Our estimates suggest that a 1 percent increase in the size of the potential market for a drug category leads to a 6 percent increase in the total number of new drugs entering the…

Understanding The Value Of Innovations In Medicine

Today, there was an excellent briefing put on by Health Affairs at the National Press Club. The topic was “Understanding the Value of Innovations in Medicine” and the briefing contained two panel discussions (see agenda).  The first panel , “Many Stakeholders, Many Values: Measuring Value In A Diverse Healthcare” featured expert economists, epidemiologists, and patient…