For far too long Big Pharma has used the false excuse that research and development (R&D) costs justify out-of-control prescription drug prices and that solutions to lower prices threaten innovation into new breakthroughs. These tired arguments, which Big Pharma wields like a shield to protect the industry’s anti-competitive and price-hiking practices, simply don’t hold up to scrutiny.

Multiple studies have found Big Pharma’s price hikes have little to no connection to the cost of their development or improvements in drugs’ efficacy. In other words, brand name drug companies set launch prices and hike prices to maximize profits – not because there is any connection to innovation.

Several recent analyses also demonstrate that Big Pharma is increasingly focused on developing new and more effective strategies to exploit loopholes and extend monopoly pricing on blockbuster products instead of investing in true innovation.

Contrary to the industry’s insistence that out-of-control prices support costly investments in R&D, the facts show that brand name drug companies invest more boldly in advertising, profits and overhead than innovation and R&D.

Policymakers must see through the pharmaceutical industry’s smoke and mirrors excuses and enact market-based solutions that hold brand name drug makers accountable and lower prescription drug prices.

Jul 23, 2024

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Jul 15, 2024

CSRXP: BIG PHARMA IS AT IT AGAIN, HIKES PRICES ON NEARLY 200 PRESCRIPTION DRUGS AS PART OF MID-YEAR INCREASES

Brand Name Drug Giants’ Average Price Increases for June-July Outpace Rate