High U.S. drug prices cover pharma's global R&D—and a whole lot more, study finds

Fierce Pharma ----- Sure to add fuel to the fiery U.S. drug pricing debate, new work from several health policy experts showed that pharma makes more from platinum pricing in the U.S. than it spends on research around the world. Published in Health Affairs, the study found a 59% spread between the average prices for the world’s 20 top-selling meds in other developed countries and those in the U.S. In other words, a drug that costs $41 in other countries costs $100 in the U.S. This isn't a premium that can be argued away with drug rebates, either. The study compared U.S. net prices—after rebates and discounts—to list prices in other developed countries. All told for 2015, that U.S. premium created $116 billion in revenue for 15 of the world’s top drugmakers, compared with $76 billion in global R&D spending from the group. So, as the researchers point out, lowering the total U.S. pricing premium just to match that $76 billion would put $40 billion back in the hands of U.S. taxpayers and patients. To get more in depth information click on the picture below to read the article.