Key Points from Chapter 5:
To better understand the process of going from molecule to generic drug, we looked at three specific drugs, each with different journeys to genericization: Lipitor, Gleevec, and Humira.
We also took a look at insulin, which has long been the poster child for a drug judged for its rising list price, which masked what’s long been a declining net price.
Some drugs don’t drop in price after their patents expire. This can be due to patent thickets, rebate walls, or other companies being unable to make a copy of that drug. Contractual genericization is one potential partial solution to this challenge.
We then addressed common misunderstandings about factors influencing drug pricing including DTC advertising, executive pay, and lobbying. We also addressed misconceptions about the U.S. Paying more than the rest of the world for drugs and reiterated who actually funds the vast majority of drug innovation.