Financing Drug Research: What are the Issues?

28 Pages Posted: 21 May 2008

See all articles by Dean Baker

Dean Baker

Centre for Economic Policy Research (CEPR); International Labour Organization (ILO) - Policy Integration Department

Abstract

Rising drug prices are placing an ever larger burden on family budgets and the economy. The Center for Medicare and Medicaid Services estimates 2004 expenditures at $207 billion (more than $700 per person), and projects that annual spending will grow to more than $500 billion by 2013 (more than $1,600 per person). The immediate cause of high drug prices is government granted patent monopolies, which allow drug companies to charge prices that are often 400 percent, or more, above competitive market prices.

Suggested Citation

Baker, Dean, Financing Drug Research: What are the Issues?. 2008 Industry Studies Conference Paper. Available at SSRN: https://ssrn.com/abstract=1134983 or http://dx.doi.org/10.2139/ssrn.1134983

Dean Baker (Contact Author)

Centre for Economic Policy Research (CEPR) ( email )

1015 18th St., NW, Suite 200
Washington, DC 20036
United States
202-293-5380 (Phone)
202-822-1199 (Fax)

International Labour Organization (ILO) - Policy Integration Department ( email )

4 route des Morillons
Geneva 22, 1211
Switzerland

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