Affordable innovation: future directions in pharmaceutical policy

In 2009, Jayadev and Stiglitz [1] proposed ‘two ideas’ to increase innovation and reduce pharmaceutical costs and prices. These were the use of value-based pricing and promoting public funding of clinical trials. Since then, NICE has tried and not yet succeeded to introduce value-based pricing, Persson and Jonsson [2] suggest that international reference pricing should cease, Gilead has made billions on the basis of exorbitant pricing of new products for hepatitis C, and prices for new products for cancer are causing concern even in the US [3]. At the same time, there has been considerable work on how to promote research and development to meet health needs in developing countries [4], the reported cost of drug development seems to continue to increase [

In 2009, Jayadev and Stiglitz [1] proposed ‘two ideas’ to increase innovation and reduce pharmaceutical costs and prices. These were the use of value-based pricing and promoting public funding of clinical trials. Since then, NICE has tried and not yet succeeded to introduce value-based pricing, Persson and Jonsson [2] suggest that international reference pricing should cease, Gilead has made billions on the basis of exorbitant pricing of new products for hepatitis C, and prices for new products for cancer are causing concern even in the US [3]. At the same time, there has been considerable work on how to promote research and development to meet health needs in developing countries [4], the reported cost of drug development seems to continue to increase [ See more See less