July 10, 2014 10:30 am
POST SUMMARY: According to the New York Times “in recent years, generics have curbed the rise of drug prices, saving the American health care system billions of dollars. After the… more>>
U.S. regulators and the drug industry want to extend by two months the deadline for the Food and Drug Administration to approve or reject new drugs. The FDA said it would need an extra 60-day “filing date” before the clock starts ticking on its 10-month deadline to review new drugs, or six months for a priority review. This means even less time on the market to recoup costs and is one of the reasons why new drug prices are going to continue to climb.
According to Forbes ” The 31 pharmaceutical companies comprising its main trade group spent $48.5 billion on research and development last year. All told, the pharmaceutical sector has spent $550 billion on R&D since 2000. That half-trillion dollars of research has yielded more than 400 new medicines” But of 12 cancer drugs approved in 2012, 11 cost more than $100,000. As more drugs are offered at that level and their sponsors get away with it, it seems to set a floor that emboldens drug companies to push the envelope. They are badly misjudging the brewing anger.