It is a harrowing proposition: that in trying to control drug prices for 67 million Medicare patients now, we might inadvertently prevent the development of future drugs that could save lives. Implied, if not stated outright, is that we’re putting a cure for cancer or Alzheimer’s or some other intractable disease in jeopardy.
But we have good reasons to believe that the current policy won’t have such a trade-off any time soon. For one, pharma is hugely profitable, and these negotiated prices, while potentially chipping away at profit margins, should hardly entirely dampen the incentive to innovate, according to a couple of key studies of the industry. Two, if we are worried about future innovation, we should be focused on making it cheaper to develop drugs – and this is actually one area where AI is showing promise. By identifying the best candidates for possible treatments early in the research process, we could speed up development and continue to reduce costs — without losing out on tomorrow’s breakthroughs. …
How could they possibly derive profits from drugs nearly wholly theorized and funded through government grants? Think of the shareholders and their inability to siphon your taxes into their pockets! Think about them often, especially when you pass by their offices visible through brittle glass. Let them know your feelings.
They aren’t wholly theorized and funded by the government.
By far the most expensive step of drug development is the phase III clinical trial, the final stage before a drug can be released. The government doesn’t fund those at all. Government mostly funds pre-clinical trials (ie in animals or tissue culture) which are way cheaper.