Shared Value for Patients and Pharmaceutical Companies

14 Pages Posted: 22 Jun 2011 Last revised: 28 Jul 2013

See all articles by Bartley J. Madden

Bartley J. Madden

DePaul University - Center for Strategy, Execution and Valuation; Illinois Institute of Technology - Center for Corporate Performance

Date Written: June 20, 2011

Abstract

The U.S. drugs-to-patients system fails to achieve its overall system goal of better drugs, sooner, at lower cost. The key constraint that impedes achieving this goal is the FDA's enormously expensive and time consuming clinical testing process. Fixing this constraint should be a strategic objective of the pharmaceutical industry. This objective is achievable with the Free To Choose Medicine plan, which would empower patients, advised by their doctors, to make informed decisions about whether to use approved drugs or new drugs in late stage clinical testing. Free To Choose Medicine would, in general, greatly increase the pace and effectiveness of pharmaceutical industry innovations, and in particular, shift resources to the most skilled firms in developing breakthrough medicines. Free To Choose Medicine legislation would implement a dynamic, self-adjusting system focused on benefiting patients through fast-paced learning in ways that the FDA's randomized control trials cannot accomodate. The result would be substantial shared value for patients and pharmaceutical companies.

Keywords: Free To Choose Medicine, Dual Tracking, FDA Reform, Shared Value

JEL Classification: A13, E61, H11, I11, I18, L51

Suggested Citation

Madden, Bartley J., Shared Value for Patients and Pharmaceutical Companies (June 20, 2011). Available at SSRN: https://ssrn.com/abstract=1868610 or http://dx.doi.org/10.2139/ssrn.1868610

Bartley J. Madden (Contact Author)

DePaul University - Center for Strategy, Execution and Valuation ( email )

1 East Jackson Blvd.
Chicago, IL 60604
United States

Illinois Institute of Technology - Center for Corporate Performance ( email )

10 West 35th Street, 18th Floor
Chicago, IL 60616
United States

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