Opinion: Even me-too drugs matter when it comes to new medicines
As the government wrestles with lowering health care costs, one strategy gaining momentum is allowing Medicare to negotiate prices for brand name drugs. There is no doubt that such a move would lower the nation’s drug bill. But it would also lower the revenues of biopharmaceutical companies and that, in turn, will reduce the number of new drugs produced each year.
Why? Because the amount of money drug companies invest in research and development is directly related to their annual sales. The biopharmaceutical industry invests 15% to 20% of its revenues into research. So for every $1 billion of revenue that a company loses, there will be $150 million to $200 million less to invest in its pipeline.
Read Original Article: Opinion: Even me-too drugs matter when it comes to new medicines »
