Title

Pharmaceutical manufacturing efficiency, drug prices, and public health: Examining the causal links

Authors

Authors

J. A. Vernon; W. K. Hughen;A. J. Trujillo

Comments

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Abbreviated Journal Title

Drug Inf. J.

Keywords

pharmaceutical manufacturing; R &D; drug prices; Health Care Sciences & Services; Pharmacology & Pharmacy

Abstract

There are important fundamental links among the efficiency of pharmaceutical manufacturing, drug prices, and public health in the United States. This article seeks to probe these links because recent research (by academics and even the US Food and Drug Administration) suggests there are significant opportunities to improve the manufacturing processes for pharmaceuticals. Two models are developed that consider the impact of reduced manufacturing costs on pharmaceutical prices and firm profits. The two models effectively bound the range of potential future benefits from greater manufacturing efficiency and estimate that, for example, a 30% reduction in manufacturing costs will generate between $1.0 and $12.3 trillion in social value to the United States.

Journal Title

Drug Information Journal

Volume

41

Issue/Number

2

Publication Date

1-1-2007

Document Type

Article

Language

English

First Page

229

Last Page

239

WOS Identifier

WOS:000244913000017

ISSN

0092-8615

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