The Ethics and Economics of Pharmaceutical Pricing

Abstract

The cost of drugs is a major and rapidly rising component of health-care expenditures. We survey recent literature on the ethics and economics of skyrocketing pharmaceutical prices and find that advances in economic research have increased the sharpness and focus of the ethically based calls to increase access by modifying patent protection and reducing prices. In some cases, research supports ethical arguments for broader access. Other research suggests that efforts to broaden access result in unintended consequences for innovation and the medical needs of patients. Both ethicists and economists need to be more cognizant of the real clinical settings in which physicians practice medicine with real patients. Greater cross-disciplinary interaction among economists, ethicists, and physicians can help reduce the disjunction between innovation and access and improve access and patient care. This dialogue will impact private industry and may spur new multistakeholder paradigms for drug discovery, development, and pricing.

Adapting Pharmaceutical Pricing and Reimbursement Strategies for Achieving Universal Health Coverage in Nepal: Lessons from Selected Low- And Lower-Middle-Income Countries

“…Increase in TPE has outpaced both increase in THE and growth in GDP [4,5] ; as a result, pharmaceutical prices, pricing strategies and reimbursement schemes are getting all the more significant. Pricing and reimbursement has to strike a balance between encouraging innovation and providing wider access, resulting in a trade-off between the two [6] . Further, unlike other health services, supply and availability of drugs are contingent on factors such as cross-border trade, making the pricing and reimbursement decision a tricky business.…”

Emerging trends on drug use globally

“…The lack of affordability of medications negatively impacts beneficial aspects of drug therapies. Parker‐Lue et al . have suggested the cost of drugs is a significant component of health‐care costs.…”

“…have suggested the cost of drugs is a significant component of health‐care costs. They also have called for greater multidisciplinary interactions between economists, clinicians and ethicists to address innovation and cost of therapy considerations . These issues are international in scope.…”

“…The lack of affordability of medications negatively impacts beneficial aspects of drug therapies. Parker-Lue et al [1] have suggested the cost of drugs is a significant component of health-care costs. They also have called for greater multidisciplinary interactions between economists, clinicians and ethicists to address innovation and cost of therapy considerations.…”

“…They also have called for greater multidisciplinary interactions between economists, clinicians and ethicists to address innovation and cost of therapy considerations. [1] These issues are international in scope. Reich and Shibuya [2] have written about the significant advances and progress made in Japan dealing with health issues.…”