Big pharma says drug prices reflect R&D cost. Researchers call BS

https://arstechnica.com/science/2022/10/big-pharma-says-drug-prices-reflect-rd-cost-researchers-call-bs/

It has long been know that the we need higher prices to find or develop new drugs has been a dodge and a ruse.   It is entirely for profit.   Katie Porter showed that on during a House of Rep. hearing with a Pharma CEO and with his own testimony showed it was about personal profit for the company / himself / the investors.     Hugs

A new study finds no correlation between R&D spending and outlandish drug prices.

Big pharma says drug prices reflect R&D cost. Researchers call BS
Mike Kemp/Getty Images

At the end of September, a spot of good news: Relyvrio, a new drug for treating amyotrophic lateral sclerosis—or ALS, a neurological disorder without a cure—was approved in the United States. The ALS community rejoiced; the drug’s authorization was described as a “long-sought victory for patients.”

But the next day, the price of the medicine was revealed: $158,000 a year. This was far higher than what the Institute for Clinical and Economic Review, an independent nonprofit that analyzes health care costs, had estimated would be a reasonable price, which it deemed to be between $9,100 and $30,700.

 

Americans, though, probably weren’t shocked. Prescription drugs in the US cost about 2.5 times what they do in other countries, and a quarter of Americans find it difficult to afford them. Almost every new cancer drug starts at over $100,000 a year. And a 2022 study found that every year, the average price of newly released drugs is 20 percent higher.

 

How drug prices are set in the US is a mysterious black box. When rationalizing their lofty price tags, one of the most common reasons pharmaceutical companies will cite is that a high price is needed to make good on the money invested in research and development.

But is that true? “You hear it so much,” says Olivier Wouters, an assistant professor of health policy at the London School of Economics and Political Science. “That’s why I was like, well, let’s get some data, because I don’t believe it. I don’t think anyone believes it.”

So Wouters did just that. In September 2022, he and his colleagues published a new paper in JAMA that took this simple argument and put it to the test. In the study, they looked at the 60 drugs that had been approved by the US Food and Drug Administration (FDA) between 2009 and 2018 for which there was publicly available information about both R&D spending and pricing. And then they matched up the figures. “Essentially, it was like investigative journalism—check all the receipts, trace back in time on what they spend,” he says. If it were the case that R&D spending was the reason behind high drug prices, you’d expect to see a high correlation between the two. Instead, they found no correlation.

 
 

Wouters acknowledges that the sample size in the research is small, but this is because pharmaceutical companies keep most of their financial data under lock and key. If the industry wants to refute the conclusion reached in his paper, then pharmaceutical companies need to make more data available, he says.

To anybody in the field, the response to the paper’s finding is: Well, duh. We know what drives drug pricing, says Ezekiel Emanuel, chair of the Department of Medical Ethics and Health Policy at the University of Pennsylvania. “It’s, ‘How far can I go? What will the market bear?’” Still, Emanuel says, it’s important to have empirical data like this study to refute the industry’s claim.

Intuitively, it feels plausible that a drug’s price would be linked to its R&D costs—the risky biz of innovation is super expensive, right? It turns out even this is highly contested. In 2020, Wouters published another paper in JAMA that dug into how much it actually costs to bring a new medicine to market, something experts have been trying to work out for decades. The number thrown around the most comes from one paper, which relied on confidential data provided by pharmaceutical companies, estimating that it takes around $2.8 billion. “These estimates are sort of shrouded in secrecy. There’s a lot of controversy around them,” says Wouters. He and his colleagues instead found the number shook out at closer to $1.3 billion, less than half the commonly held estimate. Substantially lower R&D costs would suggest that this spending shouldn’t have such a big bearing on drug pricing.

Every so often, there are small glimpses behind the curtains into how pharmaceutical companies actually decide on a drug price. An example of this is the hepatitis C drug Sovaldi, which was put on the market in 2013 for a steep $84,000 per 12-week course. In 2015, an 18-month-long US government investigation that reviewed some 20,000 pages of internal company documents revealed that Gilead, the company that owned the drug, had set the high price as a way “to ensure its drugs had the greatest share of the market, for the highest price, for the longest period of time”—in essence, that it was prioritizing profit. In response Gilead said it “stand[s] behind the pricing of our therapies because of the benefit they bring to patients and the significant value they represent to payers, providers, and our entire healthcare system by reducing the long-term costs associated with managing chronic [hepatitis C virus].”

In other countries, the price paid for a drug is decided by bodies that look at the value the drug provides. In the United Kingdom, for example, the National Institute for Health and Care Excellence (NICE) lands on the value of a new medicine by working out how much it costs to give a patient an extra year of “quality life” in comparison to current treatments on offer. If the drug offers too little value, NICE won’t recommend it to the National Health Service. Countries like France and Germany negotiate with pharmaceutical companies to land on a price determined by the clinical benefits a drug provides compared to others on the market.

In the US, things may be beginning to slowly move in this direction. Under the new Inflation Reduction Act, Medicare will be allowed to negotiate prices for a small selection of drugs. However, Emanuel is skeptical it will actually have a big impact on drug price regulation, given the way that law was designed—too many loopholes, he says.

As for holding pharmaceutical companies to account, it shouldn’t fall to academics to do this, says Tahir Amin, founder and executive director of the Initiative for Medicines, Access & Knowledge (I-MAK), a nonprofit that addresses inequities in how medicines are developed and distributed. “We need the government authorities and bodies to be doing this work,” he says of the analysis by Wouters’ team. “How are they setting policy when they do not have this information?”

Wouters doesn’t see his paper as a game changer, but it’s another weapon in the arsenal of those with power to refute excuses made by pharmaceutical companies. “I never thought this was a gotcha,” he says. “No, we always expected this to be the case. But I’m a firm believer that we need some evidence to point to.”

Let’s talk about Social Security shenanigans….

Pennsylvania district rejects Satanists’ $578 donation for school supplies

https://onlysky.media/hemant-mehta/the-satanic-temple-satanists-578-donation-school-supplies/

This is another example of superstition being more important than facts.    These people protesting are hung up on the name and won’t even bother to learn or find out that the Satanic Temple doesn’t believe in Satan, nor do they worship Satan.   The prefer their ignorance.   Even if you tell them the truth they still wouldn’t want the group in schools because that name scares / terrifies them.   The Satanic Temple is about science, learning, and being a really decent nice person.   The Superintendent seems to think the money has cooties or is cursed somehow.   The Superintendent wanted the money run through a Christian organization to clean it somehow.   That is superstition over facts, hurting kids for no reason.   Something an educator should know better than do.   Hugs

THERE ARE SEVEN FUNDAMENTAL TENETS

I
One should strive to act with compassion and empathy toward all creatures in accordance with reason.
II
The struggle for justice is an ongoing and necessary pursuit that should prevail over laws and institutions.
III
One’s body is inviolable, subject to one’s own will alone.
IV
The freedoms of others should be respected, including the freedom to offend. To willfully and unjustly encroach upon the freedoms of another is to forgo one’s own.
V
Beliefs should conform to one’s best scientific understanding of the world. One should take care never to distort scientific facts to fit one’s beliefs.
VI
People are fallible. If one makes a mistake, one should do one’s best to rectify it and resolve any harm that might have been caused.
VII
Every tenet is a guiding principle designed to inspire nobility in action and thought. The spirit of compassion, wisdom, and justice should always prevail over the written or spoken word.
 
 
 
Superintendent Steve Kirkpatrick suggested the Satanists donate the money to a Christian non-profit instead
 
Pennsylvania district rejects Satanists' $578 donation for school supplies | The Satanic Temple's donation was rejected by the Northern York County School District in Pennsylvania
The Satanic Temple’s donation was rejected by the Northern York County School District in Pennsylvania (screenshot via FOX43)
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Adonation by Satanists to the Northern York County School District in Pennsylvania to help purchase school supplies for kids was rejected by the superintendent, who told them to donate the money to a Christian organization instead.

It’s utter stupidity from a district official who seems to think donations from The Satanic Temple are somehow tainted.

All of this began last month. It’s no secret that Christian churches frequently rent out space at public schools in order to hold services on weekends. That’s perfectly legal as long as they’re paying the rental fee and obeying district rules. Under those same guidelines, The Satanic Temple held a fundraising event last month at Northern York High School in Pennsylvania.

While the school board’s decision to approve the rental was followed by a lengthier explanation that they were just following the law, the event itself wasn’t controversial. In fact, it was family friendly:

“The Back-to-School Community Celebration & Fundraiser hosted by The Satanic Temple of Philadelphia & Eastern PA will be various stations of arts & crafts, science experiments, live demos, refreshments, and fun for the entire family,” said June Everett, the campaign director, After School Satan Club (ASSC) and an ordained minister of The Satanic Temple.

As expected, though, the three-hour event was met with protests from right-wing Catholics who have no understanding of how public space works.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Two Young Incest Victims Denied Abortions In Florida

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Also, explain to me how if abortion is baby killing, why it is you are happy to vote for Walker, who fits your description of a baby killer.

Government incest babies, now a thing in Florida.

The party of less government wants to control your body. Don’t let them fool you.

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There are more comments on the site but this gives you the best understanding of the men pushing these laws.    Hugs

2022: It’s All On the Line

I know everyone and their dawg is demanding a high participation to overcome Team Evil in the 2022 Pie Fight. Our pals at Electoral-Vote have an …

2022: It’s All On the Line

BREAKING: DOJ Files DEVASTATING Motion Against Former Top Trump Aide For PRIVATE SERVER emails

The DOJ filed a motion for summary judgment in its lawsuit for replevin (return of property) against former Top Trump aide Peter Navarro who use a private server to send government emails and refuses to return the emails to the government.

Let’s talk about a Cuban referendum and party and policy….

GOP Leader Nods As MAGA Mom Says ‘Diversity, Equity, And Inclusion’ Is Marxism

House Minority Leader Kevin McCarthy nods to parents calling “diversity, equity, and inclusion” Marxist programs The Majority Report crew discusses how there is no pushback to conservatives openly advocating to end anti-bullying programs after the critical race theory panic and passing of legislation such as the don’t say gay bill. The crew also talks about how parents are being activated to go to the polls by hateful right-wing rhetoric.

Gavin Newsom WIPES THE FLOOR with DeSantis in scathing takedown

At the Texas Tribune event in Austin, Texas on Saturday afternoon, California Governor Gavin Newsom took aim at far-right Florida Governor Ron DeSantis for his anti-freedom stances, which span from his treatment of asylum seekers, the banning of books, the rollback of reproductive rights and beyond. Francis Maxwell reports.

Proud Boys And Nazis Menace TX Drag Event [VIDEO] – JMG

“We are out here to push back on things that society knows is wrong”.   Wrong society has said that drag dressing up is fine and has for decades.   It is only recently that the rabid republican elected office holders made it a sexual thing claiming it was orgies that kids were taken to.   The religious leaders have decried it as sin and against the word of god and they jumped on the republican hate language.  Dressing in drag has been done forever, from early theater to the advent of TV, to Flip Wilson in the 1970s to even Rudy Giuliani.   It is done on Halloween and has been done in drag shows for as long as I can remember.   It was done at schools.    It is only the last year that these assholes that want everyone to live, act, and be just like they demand that everyone be some kind of fictionalized 1950s.   But even in the 1950s you had drag.   This is a made up outrage to try to force the minority view that the LGBTQ+ must be removed from society, that anyone who doesn’t follow a traditional male / female role must be removed from society, and any religion not approved by this minority must be removed from society.   These groups at the US Taliban.   The Proud Boys and Patriot Front are the Nazi loving brownshirt enforcers of the curreent rabid republican party.    Hugs

Click2Houston reports:

A Drag Bingo night at a Katy Church stirred up controversy on Saturday evening. The event, meant to raise money for the church’s clothing boutique for trans-youth, sparked heated demonstrations.

KPRC 2′s cameras were rolling as demonstrators clashed outside the First Christian Church on Morton Ranch Road. A number of groups were there supporting the LGBTQ+ community and other groups against the event said they wanted to make sure their voices were heard.

“We are out here to push back on things that society knows is wrong. They are having an event, welcoming children to drag queen bingo hour. This is unacceptable,” Founder of Urban Conservatives of America Jonathan McCullough said.

Houston’s ABC affiliate reports:

“That is nonsense, because drag in itself is just a costume,” said one person supporting the event. “It’s no different than someone dressed up like a superhero at a comic convention or someone who puts on a Halloween costume.”

Heavily armed officers formed a line in the median in an effort to keep the two sides separate. As the crowds grew bigger and bigger, more officers arrived. Despite the chaos, a pastor told KHOU 11 the event was a sold-out success.

“We know that not everyone will agree with us, so we create a place for people to feel welcomed and understand there will always be people who don’t agree with us,” the pastor said.

Ščŏŧŧ Ċ – 🇺🇦 🕊 • 4 hours ago

I’m glad no one was hurt, and I’m glad they didn’t cancel the event, or back down.

Grown-ass men getting their undies bunched because they don’t like someone else’s wardrobe, and they think that entitles them to threaten violence. If there’s a better definition of toxic masculinity, I can’t think of it.

Mrs. Councillor Nugent Ščŏŧŧ Ċ – 🇺🇦 🕊 • 4 hours ago

Freedom of religion much?

Gigi • 4 hours ago

I’m very concerned about children being exposed to the hateful and toxic beliefs of men like this. Drag queens, not so much.

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SkokieDaddy – wiener dog dad Gigi • 4 hours ago

Won’t wear masks to reduce transmission of a deadly disease, but will wear masks to hide their “Proud” identify.

Chris Baker SkokieDaddy – wiener dog dad • 4 hours ago

How can they even breathe in those masks? I mean, haven’t they seen the studies that show that masks reduce oxygen in the body. I am really concerned for their health.


S_E_P • 4 hours ago

Must be some kind of really boring life when all one does is search the internet for drag queen events that can be harrassed.
I guess since all the abortion clinics were closed, there’s nothing else to entertain the nazis

Chris Baker S_E_P • 4 hours ago

I hope someone had a sign “Americans defeated Nazis once, we can do it again.” With some American flags on it. Why can’t liberals use the American flag too? We want America to be a great place to live for everyone. (Well, except Nazis)

Chris Baker Chris Baker • 4 hours ago

Didn’t some right wing nut write a book about how the Nazi were really all gay? Should make a sign promoting that book. (I was going to say to hand out copies of the book, but that would be supporting the author.)

Gustav2 S_E_P • 4 hours ago • edited

They are just trying to make their numbers much higher than those numbers are and pretend they are not just uneducated rural militia folks. I always ask crazy “conservatives” in central Ohio where their parents and/or grandparents were born.

Serene Pumpkin • 4 hours ago

And so much for freedom of religion.
This event was taking place at a church.

AyJayDee • 4 hours ago

“Sparked heated demonstrations … other groups against the event said they wanted to make sure their voices were heard“

One of the reasons we’re hurtling toward theocratic fascism in this country is because the media keep describing what’s happening with sanitizing, normalizing language like this.

David Walker AyJayDee • 4 hours ago

When the takeover happens, though, it will be interesting to see which brand of bible thumping will ‘win.’

S_E_P David Walker • 4 hours ago

And dont think it will be peaceful.

AyJayDee S_E_P • 4 hours ago

Violence is a key component of fascism, and we’re already seeing that

S_E_P AyJayDee • 4 hours ago

I understand that. Im talking about afterward, when/if they get their way. The christian factions will be killing each other for supremacy.

SkokieDaddy – wiener dog dad • 5 hours ago

We are out here to push back on things that society knows is wrong

1). Nazis

Thorn Spike • 5 hours ago

For big, proud Nazis they seem awfully scared.

Tawreos • 4 hours ago

Have they tried praying? They claim that prayer can solve any problem, but when they actually care about something they show up. Dead kids in school,? Nothing but prayer. Kids at a show? Threats and intimidation. They need to actually act like they believe their own religious bullshit on occasion.

Boreal • 4 hours ago

If you are going to events, probably a good idea to bring something like pepper spray to defend yourself if these knuckledraggers show up. They have been given permission to act like this by the GQP.

Steven in TX 🏳️‍🌈 ISOLATION Boreal • 4 hours ago

Wasp spay shoots 20 feet, and is flammable, can cause permanent eye damage if not treated quickly.
Very cost effective.

Boreal Steven in TX 🏳️‍🌈 ISOLATION • 4 hours ago

Good point. I thought I saw a wasp about to sting that incel. Good thing I brought some spray to help him.

David Walker • 5 hours ago

“That is nonsense, because drag in itself is just a costume,” said one person supporting the event. “It’s no different than someone dressed up like a superhero at a comic convention or someone who puts on a Halloween costume.”


One might also suggest proud boy and oath keepers drag as costumes.

olandp Atman SP • 3 minutes ago

As Ru Paul says, “We are born naked, all the rest is drag.”