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Erschienen in: PharmacoEconomics 8/2011

01.08.2011 | Editorial

The Case for Less, Not More, US FDA Regulation

verfasst von: Dr John A. Vernon, Joseph H. Golec

Erschienen in: PharmacoEconomics | Ausgabe 8/2011

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Excerpt

The article by Neumann et al.[1] in this issue is an important contribution to the literature; one that sheds much light on a heretofore largely overlooked aspect of Section 114 of the 1997 Food and Drug Modernization Act (FDMA). The article describes how Section 114 has been interpreted and used by major US pharmaceutical firms with respect to the dissemination and communication of a pharmaceutical product’s economic value to health plans, formulary decision makers and similar organizations. The authors’ argument for greater clarity on the topic by the US FDA deserves to be echoed loudly, as does their appeal for flexibility with respect to its interpretation. The article,[1] which fills a long-standing lacuna in the literature, is particularly timely, as the authors of the article emphasize, because new and evolving comparative effectiveness research (CER) legislation will potentially affect many Section 114 claims. …
Fußnoten
1
An economically efficient limited-term patent system would be one that minimized the sum of static and dynamic inefficiency costs. Static inefficiency costs are those associated with the restricted consumer access resulting from monopoly pricing once a new pharmaceutical technology has been discovered and introduced. The efficient price is that which equals the marginal cost of manufacturing and distribution. Of course, at price equals marginal cost, static inefficiency costs are zero but dynamic inefficiency costs are very large because firms have no incentive to invest in R&D and innovate (firms cannot capture economic rents from such activities). Hence, the trade-off between the two types of inefficiency costs, and the societal objective of minimizing their sum.
 
2
Stiglitz[2] has offered compelling arguments for a medical prize fund system.
 
3
The three quotations cited in this commentary were among those in a compilation of quotes by prominent economists regarding the consequences of FDA over-regulation. The compilation of quotes, and much more information on the subject, may be found at the website http://​www.​fdareview.​org, developed by, and based on the extensive survey research by economists Daniel Klein and Alexander Tabarrok.
 
Literatur
1.
Zurück zum Zitat Neumann PJ, Lin P-J, Hughes TE. FDAMA section 114: uses, opportunities, and implications for comparative effectiveness research. Pharmacoeconomics 2011; 29 (8): 687–92PubMedCrossRef Neumann PJ, Lin P-J, Hughes TE. FDAMA section 114: uses, opportunities, and implications for comparative effectiveness research. Pharmacoeconomics 2011; 29 (8): 687–92PubMedCrossRef
2.
Zurück zum Zitat Stiglitz J. Economic foundations of intellectual property rights. Duke Law J 2008; 57: 1696–724 Stiglitz J. Economic foundations of intellectual property rights. Duke Law J 2008; 57: 1696–724
3.
Zurück zum Zitat Becker G. Big ideas: patients’ rights. Milken Inst Rev 2004; 2: 93–4 Becker G. Big ideas: patients’ rights. Milken Inst Rev 2004; 2: 93–4
4.
Zurück zum Zitat Calfee JE. The leverage principle in the FDAs regulation of information. In: Helms RB, editor. Competitive strategies in the pharmaceutical industry. Washington, DC: American Enterprise Institute for Public Policy Research, 1996: 306–21 Calfee JE. The leverage principle in the FDAs regulation of information. In: Helms RB, editor. Competitive strategies in the pharmaceutical industry. Washington, DC: American Enterprise Institute for Public Policy Research, 1996: 306–21
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Zurück zum Zitat Peltzman S. Regulation and the natural progress of opulence. Washington, DC: AEI-Brookings Joint Center on Regulatory Studies, 2005 Peltzman S. Regulation and the natural progress of opulence. Washington, DC: AEI-Brookings Joint Center on Regulatory Studies, 2005
6.
Zurück zum Zitat Vernon JA, Golec JH. Pharmaceutical price regulation: public perceptions, economics realities, and empirical evidence. Washington, DC: American Enterprise Institute for Public Policy Research, 2009 Vernon JA, Golec JH. Pharmaceutical price regulation: public perceptions, economics realities, and empirical evidence. Washington, DC: American Enterprise Institute for Public Policy Research, 2009
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Zurück zum Zitat Hayek FA. The use of knowledge in society. Am Econ Rev 1945; 35 (4): 519–30 Hayek FA. The use of knowledge in society. Am Econ Rev 1945; 35 (4): 519–30
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Zurück zum Zitat Peltzman S. An evaluation of consumer protection legislation: the 1962 drug amendments. J Polit Economy 1973; 81 (5): 1049–91CrossRef Peltzman S. An evaluation of consumer protection legislation: the 1962 drug amendments. J Polit Economy 1973; 81 (5): 1049–91CrossRef
Metadaten
Titel
The Case for Less, Not More, US FDA Regulation
verfasst von
Dr John A. Vernon
Joseph H. Golec
Publikationsdatum
01.08.2011
Verlag
Springer International Publishing
Erschienen in
PharmacoEconomics / Ausgabe 8/2011
Print ISSN: 1170-7690
Elektronische ISSN: 1179-2027
DOI
https://doi.org/10.2165/11585740-000000000-00000

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