As Biden sig­nals in­ter­est in link­ing drug prices with R&D costs, new study finds costs per NME are in­creas­ing

Eroom’s law (es­sen­tial­ly the op­po­site of Moore’s law) holds that the de­vel­op­ment of new drugs has be­come slow­er and more ex­pen­sive over time. And a new analy­sis, pub­lished this month in Phar­ma­coEco­nom­ics, con­firms not on­ly that costs have gone up over the years but the dif­fi­cul­ty in track­ing how R&D has shift­ed.

Pres­i­dent Joe Biden last week sig­naled an in­ter­est in link­ing drug prices to R&D costs as part of his wider pledge to bring down the cost of pre­scrip­tion drugs. The de­tails of how to track such a link be­tween R&D and price still need to be ironed out in Con­gress.

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