Excerpt
Excerpt
February 25, 2025, Paper: "Proposed U.S. policies to reduce pharmaceutical prices, though particularly beneficial for low-income and elderly populations, could reduce firms’ investment in R&D. Social benefit cost ratios from pharmaceutical R&D are high, and the likely effect of the policies on profit margins are large. Higher U.S. prices subsidize the worldwide pharmaceutical market; if each drug had a single international price across high-income countries, and pharmaceutical profits were held fixed, U.S. prices would fall by half and every other country’s prices would increase (by 28 to over 300%). We outline a policy that would generate a more equitable distribution of benefits and costs across high-income countries."