Unbiased Analysis of Today's Healthcare Issues
Darius Lakdawalla has an very interesting review article in the Journal of Economic Literature on the Economics of the pharmacuetical industry. Do read the whole thing, but below I have listed some highlights. A model of firm R&D decisions Lakdawalla uses a simple model based on Nordhaus (1969) to derive some important implications about pharmaceutical…
The introduction of new treatment technologies typically occurs where there is a large market. A lot of innovations are developed to treat disease that affect a large number of people in the developed world because the financial returns are large. It is less likely to observe innovation in the treatment of rare diseases or diseases…
In a previous post in 2006, I wrote that the cost to bring a drug to market is $802 million. Although that is a huge number, it may be an underestimate. Pharmafile reports that the cost to bring a brand drug to market is now over $1 billion. the cost of bringing a brand from…