write an individual essay arguing your point of view on the tradeoff between pharmaceutical innovation (as patent system and lack of price controls in the U.S. preserve financial incentives to invest in drug development) and consumer cost (higher/unaffordable drug prices).

HEALTH ECONOMICS : THE TRADEOFF BETWEEN PHARMACEUTICAL INNOVATION (AS PATENT SYSTEM AND LACK OF PRICE CONTROLS IN THE U.S. PRESERVE FINANCIAL INCENTIVES TO INVEST IN DRUG DEVELOPMENT) AND CONSUMER COST (HIGHER/UNAFFORDABLE DRUG PRICES).
October 23, 2019 Off All,

Based on the readings below, write an individual essay arguing your point of view on the tradeoff between pharmaceutical innovation (as patent system and lack of price controls in the U.S. preserve financial incentives to invest in drug development) and consumer cost (higher/unaffordable drug prices). What do you think would be a feasible strategy (or combination strategies) that would balance pharmaceutical innovation incentives and lower consumer costs? – From the drug manufacturers’ perspective and societal perspective: Required readings will include journal articles on the effect of innovation incentives on drug development and journal articles evaluating the high economic (opportunity) cost of drug development: • Goldman, D. P., Lakdawalla, D. N., Malkin, J. D., Romley, J., & Philipson, T. (2011). The benefits from giving makers of conventional ‘small molecule’ drugs longer exclusivity over clinical trial data. Health Affairs, 30(1), 84-90. • DiMasi, J. A., Hansen, R. W., & Grabowski, H. G. (2003). The price of innovation: new estimates of drug development costs. Journal of Health Economics, 22(2), 151-185. • Danzon, P. M., Wang, Y. R., & Wang, L. (2005). The impact of price regulation on the launch delay of new drugs—evidence from twenty‐five major markets in the 1990s. Health Economics, 14(3), 269-292. – From the patient perspective and societal perspective: Required readings will include opinion articles from the NY Times on patients skipping or rationing essential medications due to their high costs, frequent changes in drugs covered due to negotiations between drug manufacturers and PBMs, etc: • https://www.nytimes.com/video/opinion/100000006488930/insulin-price-costs.html?action=click&module=RelatedLinks&pgtype=Article (Links to an external site.) • https://www.nytimes.com/2019/02/24/opinion/drug-prices-congress.html (Links to an external site.) • https://www.nytimes.com/2019/07/06/opinion/drug-pricing-trump.html (Links to an external site.) • https://www.nytimes.com/2019/01/18/opinion/cost-insurance-diabetes-insulin.html (Links to an external site.) Rubric: You will have to write an opening statement paragraph illustrating your point of view and argument with 3 reasons illustrated using evidence from the readings in one paragraph each.