5. Relationship status? It’s complicated.

It turns out the relationship between regulatory approval and drug pricing isn’t a simple one. On the one hand, regulators and payers are pressured to discourage the development of me-too products because being rewarded for not adding value feels… well… wrong-headed and simply adds to the number of new products, which typically command higher prices. On the other hand, some are arguing that these product cost – drug value decisions are actually driving prices up because denying approval of low-value-add products leaves existing products with little competition.  And we all know what limited competition breeds. Just ask. Gilead.They’re not a cheap date. Only time will tell how the gatekeepers’ strategies will evolve but the law of unintended consequences will not be ignored!

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