Two recent articles in major news outlets feature MSK’s Dr. Peter Bach discussing drug costs.
A Washington Post article considers alternate methods for calculating drug prices, including “value-based pricing.” Dr. Bach comments that such a system would “anchor a drug’s price to its benefit,” but that the benefit would have to be very clearly defined. Later in the article, Dr. Bach states that it is difficult to determine which aspects of drugs should be valued most and thus become factors in both cost and drug development priorities in a value-based pricing system.
A New York Times article takes a historical view of rising drug costs. U.S. drug spending tripled from 1997 to 2007, then plateaued for about six years before rising again. Dr. Bach explains that the more recent price hikes are due in part to a lack of competition for new biologic drugs and quicker FDA approvals for new, expensive pharmaceuticals.