The ethics and economics of pharmaceutical pricing

Sara Parker-Lue, Michael Santoro, Greg Koski

Research output: Contribution to journalReview articlepeer-review

21 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)191-206
Number of pages16
JournalAnnual Review of Pharmacology and Toxicology
Volume55
DOIs
StatePublished - Jan 6 2015

All Science Journal Classification (ASJC) codes

  • Toxicology
  • Pharmacology

Keywords

  • Differential pricing
  • Drug access
  • Innovation
  • Patents
  • Prescribing
  • Price controls
  • Rationing

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