Viewpoint: Price controls would stifle private sector innovation that gives us most of our new biomedical drugs

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Image: Adragan

The false maxim that the government is primarily responsible for all innovation has been refuted through published literature in peer-reviewed scientific journals over the past several decades.

Recently, an article in the British Medical Journal once again analyzed the topic. Comparable to prior research, the investigators found that the majority of biopharmaceutical research was conducted and funded by the private sector.

Despite having excluded vaccines, biologic medicines and gene therapies from their final analysis, a study limitation noted by the authors, the researchers found that 75 percent of all Food and Drug Administration-approved drugs between January 2008 and December 2017 were funded and researched by private companies.

Related article:  Viewpoint: We're letting bureaucracy get in the way of diagnostic innovation

Despite these findings, some policymakers and pundits continue to repeat the false narrative.

What is more troubling is that these same policymakers want to institute price controls that will negatively impact the ability of the private sector to fund research and development. Price control policies will lead to reduced private sector revenue; hence, restricting the number of new drugs developed in the future since profits from one generation of medicines pay for the development cost of the next generation of innovative treatments.

Read full, original post: Debunking the Myth of Who Funds Biomedical Innovation

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