Cost of Developing a New Drug

Posted by Ed Schoonveld on Fri, Dec 19, 2014

Research and development (R&D) cost for prescription drugs is often a central theme to the drug-pricing debate. It is indeed one of the reasons why drug cost can sometimes be very high. The argument never seems to really hold water with anybody, particularly for individual drugs that exceed market expectations, where payers and the public sometimes argue that there should be opportunities to lower price. The Price of Global Health (Second Edition) goes more in depth on the drug-pricing debate and on why prescription drugs are different from other products. So what is new in this discussion?


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New Edition: The Price of Global Health

Posted by Ed Schoonveld on Wed, Dec 03, 2014

More than three years have passed since The Price of Global Health was first published. As the book’s author, I have been delighted with the enthusiastic reactions, which as I mentioned in the book’s preface, has made me wonder why I did not write it before. Meanwhile, the prescription drug market has continued to rapidly change with the introduction of the Affordable Care Act (Obamacare) in the United States, AMNOG in Germany and many other changes in payer systems worldwide. Also, I have received a lot of interest in addressing some additional topics related to pharmaceutical market access and pricing. Today, I am happy to announce the imminent publication of a second edition of The Price of Global Health.


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RIP Value-Based Pricing, Long Live Multi-Criteria Decision Analysis?

Posted by Ed Schoonveld on Mon, Dec 01, 2014

The annual European ISPOR (International Society for Pharmacoeconomics and Outcomes Research) conference was held in Amsterdam in early November. One of the dominant topics in recent health economics circles has been the value-based pricing concept that NICE (National Institute for Health and Care Excellence), England’s NHS (National Health Service) and the Department of Health have been contemplating about introducing over the past three years. However, NICE Chief Executive Sir Andrew Dillon announced in September, “Following an extensive consultation, it’s clear that just changing NICE’s methods will not overcome concerns about how the NHS assesses new treatments.”

The NICE conclusion left many health economists puzzled. A natural question is, what is next?


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The Hepatitis C Pricing Debate

Posted by Ed Schoonveld on Tue, Nov 25, 2014

The need for new drugs seems higher than ever with population-wide health crises such as Ebola, H1N1, Anthrax and HIV/AIDS. Maintaining an innovative drug development environment seems increasingly critical for our existence. In addition, we are facing healthcare issues related to our lifestyle, which through cardiovascular disease and diabetes alone contribute heavily to escalating healthcare costs.


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