{"id":3081,"date":"2016-09-30T17:00:54","date_gmt":"2016-09-30T21:00:54","guid":{"rendered":"http:\/\/lacertabio.com\/?p=3081"},"modified":"2016-09-30T17:00:54","modified_gmt":"2016-09-30T21:00:54","slug":"the-25-coffee-mug","status":"publish","type":"post","link":"https:\/\/lacertabio.com\/the-25-coffee-mug\/","title":{"rendered":"The $25 Coffee Mug"},"content":{"rendered":"<p class=\"zw-paragraph\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">Our recent trip to Stockholm and the\u00a0<\/span><a href=\"http:\/\/www.nlsdays.com\/\" data-href=\"http:\/\/www.nlsdays.com\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;http:\/\/www.nlsdays.com&quot;,&quot;lnktype&quot;:1}\">Nordic Life Science Days<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">\u00a0conference was quite enlightening, especially as we publicly discuss drug prices (yet again).\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">One presentation at NLSD by\u00a0<\/span><a href=\"http:\/\/swedenbio.se\/information-in-english\/\" data-href=\"http:\/\/swedenbio.se\/information-in-english\/\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;http:\/\/swedenbio.se\/information-in-english\/&quot;,&quot;lnktype&quot;:1}\">SwedenBio<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">\u00a0enlightened us on how a\u00a0<\/span><a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2016-09-29\/epipen-s-69-cost-in-britain-shows-other-extreme-of-drug-pricing-itnvgvam\" data-href=\"http:\/\/www.bloomberg.com\/news\/articles\/2016-09-29\/epipen-s-69-cost-in-britain-shows-other-extreme-of-drug-pricing-itnvgvam\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;http:\/\/www.bloomberg.com\/news\/articles\/2016-09-29\/epipen-s-69-cost-in-britain-shows-other-extreme-of-drug-pricing-itnvgvam&quot;,&quot;lnktype&quot;:1}\">different system and society views drug pricing<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">. From the Swedish socialist perspective, one of their aims (aside from job creation) is to provide their citizens with the latest medical innovations, while balancing that against the need to maintain costs as low as possible.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">So beyond incessant negotiations on drug pricing, what else can government do?<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">The perspective in Sweden that reducing drug costs will save money. Hence, as a technologically advanced country, it makes sense to invest where and how it can to reduce development costs, thereby reducing their expenses in the future.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">Sweden is taking the approach of digitization of all medical records, and the creation of extensively detailed biobanks. More importantly, these data are now being actively used to help pharma companies recruit clinical trial subjects, accelerating recruitment in an attempt to reduce overall trial cost.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">So it is an interesting situation, in the sense that the payer\/government is\u00a0<\/span><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;fs&quot;:&quot;none&quot;}\">making investments<\/span><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">\u00a0in tools and technologies which will reduce drug development costs. Assuming those savings are passed on after product approval, the situation could be a win-win for both parties. This is a very long-term, forward-looking approach.<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">But here in the USA, the land of capitalistic, open markets, we allow companies to charge whatever they want for their products, subject to payer negotiation, of course. Ultimately, the market decides what is a &#8220;fair&#8221; price or not through demand\/supply and price elasticity.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">Drug pricing is always viewed by the public as a negative. Even before the recent\u00a0<\/span><a href=\"http:\/\/fortune.com\/2016\/09\/27\/mylan-epipen-heather-bresch\/\" target=\"_blank\" data-href=\"http:\/\/fortune.com\/2016\/09\/27\/mylan-epipen-heather-bresch\/\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;http:\/\/fortune.com\/2016\/09\/27\/mylan-epipen-heather-bresch\/&quot;,&quot;lnktype&quot;:1}\">EpiPen pricing fiasco<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">, pharmaceutical companies are frequently accused of gouging sick people by overcharging for medications which are not safe, marginally effective, or both.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">We rarely hear about the lives saved or the expensive procedures avoided through the use of medications. But, as we have seen during this election cycle, the press rarely has any interest in reporting anything positive, especially if that positive news comes from large, multinational companies.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">Both innovators and insurers have an obvious antagonistic view on drug prices. Indeed, the tensions between drug innovators and insurers are\u00a0<\/span><a href=\"https:\/\/morningconsult.com\/2016\/03\/14\/drugmakers-and-insurers-blame-each-other-for-drug-prices\/\" data-href=\"https:\/\/morningconsult.com\/2016\/03\/14\/drugmakers-and-insurers-blame-each-other-for-drug-prices\/\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;https:\/\/morningconsult.com\/2016\/03\/14\/drugmakers-and-insurers-blame-each-other-for-drug-prices\/&quot;,&quot;lnktype&quot;:1}\">very real, and very public<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">. Current presidential candidates are weighing in on the issue, targeting pharmaceutical companies by proposing measures to &#8220;<\/span><a href=\"https:\/\/www.hillaryclinton.com\/briefing\/factsheets\/2015\/09\/21\/hillary-clinton-plan-for-lowering-prescription-drug-costs\/\" data-href=\"https:\/\/www.hillaryclinton.com\/briefing\/factsheets\/2015\/09\/21\/hillary-clinton-plan-for-lowering-prescription-drug-costs\/\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;https:\/\/www.hillaryclinton.com\/briefing\/factsheets\/2015\/09\/21\/hillary-clinton-plan-for-lowering-prescription-drug-costs\/&quot;,&quot;lnktype&quot;:1}\">stop excessive profiteering<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">.&#8221;\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">Yet, as a society need medicines, much in the same way that we need clear air, clean water, and reasonably fresh food.<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">But, does government have a role or a responsiblity to ensure that its citizens have access to EpiPen at a reasonable price?\u00a0 And, how would this differ if the product in question was not a life-saving product? And how do we define &#8220;life-saving&#8221; anyway?<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">The Bernie Sanders presidential campaign this year reminded us that Scandinavian-style &#8220;safety nets&#8221;\u00a0<\/span><a href=\"http:\/\/reason.com\/archives\/2016\/09\/16\/why-is-socialism-so-damned-attractive#comment\" data-href=\"http:\/\/reason.com\/archives\/2016\/09\/16\/why-is-socialism-so-damned-attractive#comment\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;http:\/\/reason.com\/archives\/2016\/09\/16\/why-is-socialism-so-damned-attractive#comment&quot;,&quot;lnktype&quot;:1}\">can be quite appealing<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">. Yes, their\u00a0<\/span><a href=\"http:\/\/taxfoundation.org\/blog\/how-scandinavian-countries-pay-their-government-spending\" data-href=\"http:\/\/taxfoundation.org\/blog\/how-scandinavian-countries-pay-their-government-spending\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;http:\/\/taxfoundation.org\/blog\/how-scandinavian-countries-pay-their-government-spending&quot;,&quot;lnktype&quot;:1}\">taxes are high<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">. And, you will pay relatively high prices for food, beverages, and souvenirs, such as $25 coffee mugs at Starbucks in the Stockholm Airport.<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">But the taxes collected are used to provide its citizens with education, health care, and many other social benefits which we pay for ourselves. Is this such a bad idea? Or, would we still complain if the\u00a0<\/span><a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2016-09-29\/epipen-s-69-cost-in-britain-shows-other-extreme-of-drug-pricing-itnvgvam\" data-href=\"http:\/\/www.bloomberg.com\/news\/articles\/2016-09-29\/epipen-s-69-cost-in-britain-shows-other-extreme-of-drug-pricing-itnvgvam\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;http:\/\/www.bloomberg.com\/news\/articles\/2016-09-29\/epipen-s-69-cost-in-britain-shows-other-extreme-of-drug-pricing-itnvgvam&quot;,&quot;lnktype&quot;:1}\">EpiPen was available for $69<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">\u00a0instead of its new price?\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span style=\"color: #008000;\"><strong><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;fw&quot;:&quot;bold&quot;}\">Drug Pricing Trends<\/span><\/strong><\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">A recent study found that\u00a0<\/span><a href=\"https:\/\/aspe.hhs.gov\/sites\/default\/files\/pdf\/175071\/GenericsDrugpaperr.pdf\" data-href=\"https:\/\/aspe.hhs.gov\/sites\/default\/files\/pdf\/175071\/GenericsDrugpaperr.pdf\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;https:\/\/aspe.hhs.gov\/sites\/default\/files\/pdf\/175071\/GenericsDrugpaperr.pdf&quot;,&quot;lnktype&quot;:1}\">generic drugs are an increasingly important part of Medicaid prescriptions, but a decreasing expense<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">. In other words, Medicaid is paying for more prescriptions filled by generic products, but their overall drug expense is declining because of flat or falling generic drug prices.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">Intuitively, this makes sense. It suggests that the market for generic prescription drugs is working efficiently, with buyers gravitating towards the lowest-cost option without sacrificing product quality, safety, or efficacy.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">However, the study also found that there are pockets of inefficiency in this market, especially for products which<\/span><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">\u00a0have low demand. For example, tetracycline 500 mg capsule prices rose from $0.048 to $8.59 in one year, a 17,000% increase. Prices for several other generic drugs rose 500% or more during this same time period, such as digoxin, clomipramine, and fluconazole.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">At a macro level, the impact of these enormous price increases is negligible to Medicaid. Their prescription volumes are relatively low, and the huge cost increases are &#8220;hidden&#8221; in the broader context.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">Now from the consumer&#8217;s perspective, that&#8217;s a different matter. Assuming that is the retail out-of-pocket price, a two-week course of acne treatment jumped from &lt;$2 to nearly $250.\u00a0 An informal check with our local pharmacy found that a 28-count prescription for tetracycline 500 mg capsules would cost an uninsured individual $376.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">A similar study\u00a0<\/span><a href=\"http:\/\/www.aarp.org\/content\/dam\/aarp\/ppi\/2016-02\/RX-Price-Watch-Trends-in-Retail-Prices-Prescription-Drugs-Widely-Used-by-Older-Americans.pdf\" data-href=\"http:\/\/www.aarp.org\/content\/dam\/aarp\/ppi\/2016-02\/RX-Price-Watch-Trends-in-Retail-Prices-Prescription-Drugs-Widely-Used-by-Older-Americans.pdf\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;http:\/\/www.aarp.org\/content\/dam\/aarp\/ppi\/2016-02\/RX-Price-Watch-Trends-in-Retail-Prices-Prescription-Drugs-Widely-Used-by-Older-Americans.pdf&quot;,&quot;lnktype&quot;:1}\">conducted by the AARP<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">\u00a0found that from 2010 to 2013, the average annual retail price for a generic product fell from $551 to $283. During the same time period, branded prescription prices rose from $2,068 to $2,960.<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><strong><span class=\"zw-portion\" style=\"color: #008000;\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;fw&quot;:&quot;bold&quot;}\">Should Payers Invest?<\/span><\/strong><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">The concept of having payers (private and government) actively invest in technologies which reduce drug development and manufacturing costs is interesting. Governments can do this by re-prioritizing the current NIH\/SBIR\/STTR grant programs to emphasize drug development cost savings. This will come at the expense of research in other fields. But tough decisions always have to be made in the face of socioeconomic challenges.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">Payers have the ability to make investments as well. For instance, venture capital-like funds can be established with a focus on companies and technologies which reduce drug costs. They can also invest in digitization and biobanking, offering these data to drug developers in exchange for lower prices after approval.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">Ultimately, investing in innovation to solve problems is far more impactful than voting for a candidate or policy which forces companies or individuals to behave in a certain manner.\u00a0<\/span><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">If you don&#8217;t think innovation can change behavior, put your mobile phone away for a few hours&#8230;<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">Where and how should governments and payers invest? Here are a few ideas:<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span style=\"color: #008000;\"><em><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;fs&quot;:&quot;italic&quot;}\">Personalized Medicine<\/span><\/em><\/span><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">\u00a0&#8211;\u00a0 A terrific story in the\u00a0<\/span><a href=\"http:\/\/www.scientificamerican.com\/article\/a-very-personal-problem\/\" data-href=\"http:\/\/www.scientificamerican.com\/article\/a-very-personal-problem\/\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;http:\/\/www.scientificamerican.com\/article\/a-very-personal-problem\/&quot;,&quot;lnktype&quot;:1}\">October issue of Scientific American<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">\u00a0describes how several hospitals are using pharmacogenomics to improve drug\/patient selection, thereby improving efficacy, reducing side effects, and ultimately accelerating and improving patient care. Since these studies involve a blend of branded and generic drugs, government has an opportunity to invest in the development of additional databases, physician and pharmacist training, software, and other tools to expand its usage. Insurers have historically been against these approaches, but this surely must change.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span style=\"color: #008000;\"><em><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;fs&quot;:&quot;italic&quot;}\">Biosimilars<\/span><\/em><\/span><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">\u00a0&#8211; This nonsense has dragged on for far too long in the US, and we will not comment further on it except to say that we need to accelerate biosimilar development and commercialization.<\/span><span class=\"zw-portion EOP\" data-format=\"&quot;&quot;\">\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span style=\"color: #008000;\"><em><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;fs&quot;:&quot;italic&quot;}\">Biobanking<\/span><\/em><\/span><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">\u00a0&#8211; Providing access to human tissue samples from patients can be a great way to screen compounds for efficacy and safety before entering expensive clinical trials. The\u00a0<\/span><a href=\"https:\/\/www.ncbi.nlm.nih.gov\/pmc\/articles\/PMC3118708\/\" data-href=\"https:\/\/www.ncbi.nlm.nih.gov\/pmc\/articles\/PMC3118708\/\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;https:\/\/www.ncbi.nlm.nih.gov\/pmc\/articles\/PMC3118708\/&quot;,&quot;lnktype&quot;:1}\">ethical and privacy issues should not be dismissed<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">, but nor should they hinder progress.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><em><span class=\"zw-portion\" style=\"color: #008000;\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;fs&quot;:&quot;italic&quot;}\">Venture Funds<\/span><\/em><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">\u00a0&#8211; Insurance companies, especially property and casualty insurers, have rapidly increased their investments in venture-sized companies,\u00a0<\/span><a href=\"https:\/\/www.cbinsights.com\/blog\/insurance-startup-investing\/\" data-href=\"https:\/\/www.cbinsights.com\/blog\/insurance-startup-investing\/\" data-type=\"1\"><span class=\"zw-portion link\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;cls&quot;:&quot;link&quot;,&quot;url&quot;:&quot;https:\/\/www.cbinsights.com\/blog\/insurance-startup-investing\/&quot;,&quot;lnktype&quot;:1}\">especially in the technology sector<\/span><\/a><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">. Health insurers are no different, as Aetna, Blue Cross Blue Shield, Kaiser Permanente, and others already have venture arms. We do not know if their objectives are purely ROIC, or if they have strategic goals as well, such as investing in technologies which reduce prescription drug costs.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span style=\"color: #008000;\"><strong><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;,&quot;fw&quot;:&quot;bold&quot;}\">What Does The Future Hold?<\/span><\/strong><\/span><span class=\"zw-portion EOP\" data-format=\"&quot;&quot;\">\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">One thing that the current US election cycle has tought us is that politicians have no courage when it comes to tackling challenges like this without going after &#8220;greedy corporations.&#8221; It sounds better to the electorate to position yourself as a politician &#8220;fighting for you,&#8221; instead of rationally tackling these issues. And why not? The primary objective of every politician is to get elected. And if soundbites enable this, then so be it.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">In the US, private insurers are our best hope for reducing drug costs. They have the capital and the financial influence to use innovation (not haggling) to reduce drug development costs. Consortia of insurers could really cause pharma CEOs to break into a sweat.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">But let us not blame &#8220;Big Pharma&#8221; either. They have a responsibility to their employees and shareholders to deliver not only innovative, life-saving products, but also returns for their investors.\u00a0<\/span><\/p>\n<p class=\"zw-paragraph\" data-textformat=\"{&quot;type&quot;:&quot;text&quot;}\" data-format=\"{&quot;type&quot;:&quot;paragraph&quot;,&quot;ts&quot;:{&quot;type&quot;:&quot;text&quot;}}\"><span class=\"zw-portion\" data-format=\"{&quot;type&quot;:&quot;text&quot;}\">So the key will be for our industry and insurers to continue talking, rationally, cordially, and effectively, before we elect national officials who have no problem with having the masses pay $25 for an empty coffee or tea cup.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our recent trip to Stockholm and the\u00a0Nordic Life Science Days\u00a0conference was quite enlightening, especially as we publicly discuss drug prices (yet again).\u00a0 One presentation at NLSD by\u00a0SwedenBio\u00a0enlightened us on how a\u00a0different system and society views drug pricing. From the Swedish socialist perspective, one of their aims (aside from job creation) is to provide their citizens [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3082,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[102,14,10],"tags":[],"class_list":["post-3081","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-biosimilars-2","category-drug-development","category-europe","entry","has-media"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/lacertabio.com\/wp-json\/wp\/v2\/posts\/3081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lacertabio.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lacertabio.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lacertabio.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/lacertabio.com\/wp-json\/wp\/v2\/comments?post=3081"}],"version-history":[{"count":0,"href":"https:\/\/lacertabio.com\/wp-json\/wp\/v2\/posts\/3081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lacertabio.com\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/lacertabio.com\/wp-json\/wp\/v2\/media?parent=3081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lacertabio.com\/wp-json\/wp\/v2\/categories?post=3081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lacertabio.com\/wp-json\/wp\/v2\/tags?post=3081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}