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

    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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