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US pharmaceutical innovation in an international context
Salomeh Keyhani1, Steven Wang, Paul Hebert
1Mount Sinai School of Medicine, One Gustave L. Levy Place, Box 1077, New York, NY, 10128, USA. salomeh.keyhani@mountsinai.org
American Journal of Public Health
|April 21, 2010
Summary
The United States
Area of Science:
- Pharmaceutical Innovation
- Drug Development
- Health Economics
Background:
- The United States, a major pharmaceutical market, does not regulate drug prices.
- Global pharmaceutical innovation is crucial for addressing unmet medical needs.
Purpose of the Study:
- To determine if the US's high prescription drug spending correlates with a disproportionate share of new molecular entity (NME) development.
- To compare NME innovation rates across countries with varying drug pricing regulations.
Main Methods:
- Data on NMEs approved between 1992 and 2004 were collected.
- Each NME was assigned to its country of origin (inventor country).
- The proportion of NMEs developed by each country was analyzed against its share of global prescription drug spending and GDP.
Main Results:
- The US, with 42% of drug spending and 40% of GDP, developed 43.7% of NMEs.
- Some regulated markets (UK, Switzerland) innovated more than their economic contribution.
- Other countries (Japan, South Korea) innovated less than expected based on their economic input.
Conclusions:
- High prescription drug spending in the US does not lead to disproportionately higher domestic pharmaceutical innovation.
- Countries with drug price regulations are significant contributors to global NME development.
- Pharmaceutical innovation is influenced by factors beyond just market size and spending.
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