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Why Is Drug Pricing Higher In US? Study Takes Aim At R&D Argument

 
• By Cathy Kelly

Amgen, Biogen, Pfizer and Teva generated more than twice their global R&D budgets with higher pricing in the US compared to Western Europe and Canada, researchers at Memorial Sloan Kettering found.

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The premium prices that biopharma manufacturers charge in the US compared to Europe and Canada often generate more “excess revenue” than companies spend on research and development, according to a study by Memorial Sloan Kettering Health Policy and Outcomes Center Director Peter Bach and researchers Nancy Yu and Zachary Helms.

The study, which was published in the Health Affairsblog March 7, challenges the argument that pricing is set higher in the US than in other countries to help...

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