More Drugs for More Developing World Diseases
AEI Health Policy Outlook No. 2 March 2008
9 Pages Posted: 23 Oct 2013
Date Written: March 3, 2008
The research-based pharmaceutical industry has a key role in improving access to medicines. By continuing to pursue innovative research and development (R&D), it can improve the availability and effectiveness of drugs. By adopting tiered prices for more drugs — charging people in different countries different prices according to ability to pay and market size — the industry can also increase the number of people who are able to buy medicines, improving consumer welfare while retaining and even improving profit margins. It can work with its competitors and partners in nonprofit and government sectors to explore the practicality of public-private partnerships and the synergies that may come with them. The United Nations (UN), however, appears to want these companies to assume the responsibilities of government — a role with dubious legal and practical implications. If the UN and its supporters get their way, the long-term consequences for public health could be dire.
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