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Reasonable Rx
Solving the Drug Price Crisis
Peter Temin , Stan N. Finkelstein
A Real Plan for Making Drugs Affordable-and Promoting Innovation, Too
"This book is a necessity for understanding the pharmaceutical industry. Both the pluses and minuses of the present system are set forth with a judicious combination of historical narrative, economic analysis, and statistical data. The highly original proposals for reform will be a major stimulant to analysis and policy-making."
-Kenneth Arrow, Nobel Laureate in Economics, Professor Emeritus, Stanford University
"This is a timely book by authors who know what they are talking about. They tackle a big problem: rising drug prices that are threatening to overwhelm us all-and especially those with limited or absent health care insurance. Will we drive people overseas for healthcare? Will there be social unrest? This book describes the problem and then offers a solution. Worth a careful read by everyone, pharmaceutical manufacturers and government policymakers especially."
-Roger Williams, M.D., Chief Executive Officer of the United States Pharmacopeia and a former
senior official of the Food and Drug Administration
"This book confounds two sets of skeptics: Those who say there's no way to resolve the conflict between the need to fund pharmaceutical research and our desire to keep medicine affordab≤ and those who think that economics never has anything good to say."
-Honorable Barney Frank, Congressman from Massachusetts
"This book comes at the right time and could become the starting point of discussions, which will eventually lead us into new era in the healthcare care industry. It will without a doubt become a must for insiders of the pharma- and biotech industries."
-Dr. Jürgen Drews, retired President of Roche Pharmaceutical Group Global Research
Acknowledgments viii
About the Authors ix
Introduction xi
Chapter 1: Drugs and Drug Prices 1
Chapter 2: The American Way to Discover Drugs 21
Chapter 3: The Drug Industry Today 39
Chapter 4: Are Drug Companies Risky? 59
Chapter 5: How Not to Lower Drug Prices 77
Chapter 6: Squandering R & D Resources 103
Chapter 7: How to Lower Drug Prices 129
Appendix: Our Solution in Detail 155
Index 177
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