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Drug Repurposing Hypothesis Generation Using the "RE:fine Drugs" System

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Published on: December 11, 2016

Comparative effectiveness regulations and pharmaceutical innovation.

John A Vernon¹, Joseph H Golec, J Stedman Stevens

¹Department of Health Policy and Management, The University of North Carolina at Chapel Hill, Chapel Hill, North Carolina, USA. vernon@email.unc.edu

Pharmacoeconomics

|September 14, 2010

Summary

This summary is machine-generated.

Comparative effectiveness research (CER) may impact pharmaceutical innovation by increasing drug development costs. This study models how these costs could affect research and development investment in the pharmaceutical industry.

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Area of Science:

Health economics
Pharmaceutical policy
Health services research

Background:

Comparative effectiveness research (CER) is a key component of healthcare reform, with significant funding allocated.
CER aims for efficient resource allocation by comparing treatment outcomes and costs.
The implementation of CER presents uncertainties and potential unintended consequences for the healthcare market.

Purpose of the Study:

To analyze the potential impact of comparative effectiveness research on pharmaceutical innovation.
To investigate how increased drug development costs from CER trials could affect pharmaceutical R&D investment.
To model the causal links between CER trial costs and industry R&D investment.

Main Methods:

Development of several models focusing on clinical trial design.
Modeling of drug development costs and their relationship with R&D investment.
Analysis of causal pathways linking CER trial expenses to industry R&D investment.

Main Results:

Increased costs for conducting larger, head-to-head comparative effectiveness trials may arise.
These increased costs could potentially reduce incentives for pharmaceutical research and development.
The study provides a framework for understanding the economic implications of CER on drug innovation.

Conclusions:

The operationalization of comparative effectiveness research may inadvertently stifle pharmaceutical innovation.
Policymakers must consider the potential negative consequences on R&D investment when designing CER legislation.
Further research is needed to fully understand and mitigate the risks to pharmaceutical innovation.