[Ip-health] The variables in Dr. Peter Bach's Drug Abacus

Jamie Love james.love at keionline.org
Fri Jun 19 12:53:21 PDT 2015

On Fri, Jun 19, 2015 at 3:41 PM, Ruth Lopert <ruth.lopert at gmail.com> wrote:

> Jamie
> I have to disagree. Novel approaches should only be rewarded if they
> deliver enhanced outcomes - as would be the case in other industries. We
> should be rewarding the results, not the enterprise
> RL

​I think it is wrong to think of drug pricing as focusing too much on the
benefit of the product, in terms of outcomes. ​  The benefits, in terms of
enhanced outcomes, are of course, going to be a major factor.  But the
point of prices/rewards above generics manufacturing costs is to create
incentives for R&D.  I think you should consider what types of R&D
investments you want to encourage.

imatinib, trastuzumab, cisplatin and taxol for cancer, and azt,
ritonavir/crixivan, and Nevirapine for HIV are examples of novel drugs that
were followed by a proliferation of new products.   Look at the number of
nibs and mabs for cancer that followed imatinib and trastuzumab.  The
follow-on nibs and mabs benefited from the 1st drugs of their type.


James Love.  Knowledge Ecology International
KEI DC tel: +1.202.332.2670, US Mobile: +1.202.361.3040, Geneva Mobile:
+41.76.413.6584, twitter.com/jamie_love

More information about the Ip-health mailing list