Drug Development and Marketing
Conference Proceedings

  • Title:

    Drug Development and Marketing
  • Edited By:

    Robert B. Helms
  • Paperback ISBN:

    0844720623
  • Hardcover ISBN:

    0844720631

This title is currently out of print, but online booksellers sometimes have used copies available. See links below.

This book contains the edited proceedings of a conference sponsored by the Center for Health Policy Research at AEI in July 1974. The conference--which brought together experts from the government, industry, and the academic community--examined how the public's interest in health care is affected by the performance of the drug industry and government policy.

Part I deals with the consumer's interest in pharmaceuticals. Kenneth Melmon reviews some of what we know about drug risks and benefits, concluding that more data are needed before we can separate fact from fancy. Sam Peltzman measures the benefits of more rapid diffusion of drug information and finds that these benefits might be quite large. Mitchell Balter looks at how consumers cope with illness and sees a need for more study of the benefits and risks of drug therapy from the vantage point of the consumer.

Part II considers drug company profitability. Thomas Stauffer tests a financial model with pharmaceutical industry data to show that accounting rates of return have an upward bias that produces serious overstatement of the economic rates of return for discovery-incentive industries such as pharmaceuticals. Robert Ayanian's model, which treats advertising and R&D expenditures as capitalized investment, shows that accounting rates of return for six pharmaceutical firms not unusually high compared to other industries. David Schwartzman, finding that the expected rate of return from drug R&D declined from 11.3 percent in 1960 to 3.3 percent in 1972, considers the causes and probable outcomes of this decline.

Part III offers new evidence on the effects of government policy on drug innovation. Harold Clymer presents data on trends in domestic and foreign drug research to show that the U.S. regulatory climte has induced research-intensive drug firms to divert more of their research efforts to other countries. Louis Lasagna and William Wardell, summarizing their study on the research output of fifteen U.S. firms, show that since 1962 new drugs approved by the FDA have represented a very small percentage of the large, but declining, number of drugs submitted for approval. They propose a redefinition of the FDA's role to place more emphasis on the benefits of drugs in improving the treatment of illness. In a separate paper, William Wardell surveys the effects of changes in U.S. and UK regulatory policy on various therapeutic categories of drugs.

Part IV considers the structure and behavior of the drug industry. Lester Tesler test theories of market entry and finds that prices tend to fall in response to entry and that advertising effort is a means of entry. Douglas Cocks, using a different database, finds that drug prices decline in response to the industry's competitive R&D process. Bernard Kemp, focusing on the example of diuretic drugs, gives a detailed account of how drug companies compete through the innovative process.

Robert B. Helms is a resident scholar at AEI.

Shop at Amazon.com

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Robert B.
Helms
  • Robert B. Helms has served as a member of the Medicaid Commission as well as assistant secretary for planning and evaluation and deputy assistant secretary for health policy at the U.S. Department of Health and Human Services (HHS). An economist by training, he has written and lectured extensively on health policy and health economics, including the history of Medicare, the tax treatment of health insurance, and compared international health systems. He currently participates in the Health Policy Consensus Group, an informal task force that is developing consumer-driven health reforms. He is the author or editor of several AEI books on health policy, including Medicare in the Twenty-First Century: Seeking Fair and Efficient Reform and Competitive Strategies in the Pharmaceutical Industry.
  • Phone: 2028625877
    Email: rhelms@aei.org
  • Assistant Info

    Name: Kelly Funderburk
    Phone: 202.862.5855
    Email: Kelly.Funderburk@AEI.org

What's new on AEI

image The Census Bureau and Obamacare: Dumb decision? Yes. Conspiracy? No.
image A 'three-state solution' for Middle East peace
image Give the CBO long-range tools
image The coming collapse of India's communists
AEI on Facebook
Events Calendar
  • 21
    MON
  • 22
    TUE
  • 23
    WED
  • 24
    THU
  • 25
    FRI
Wednesday, April 23, 2014 | 12:00 p.m. – 1:30 p.m.
Graduation day: How dads’ involvement impacts higher education success

Join a diverse group of panelists — including sociologists, education experts, and students — for a discussion of how public policy and culture can help families lay a firmer foundation for their children’s educational success, and of how the effects of paternal involvement vary by socioeconomic background.

Thursday, April 24, 2014 | 12:00 p.m. – 1:30 p.m.
Getting it right: A better strategy to defeat al Qaeda

This event will coincide with the release of a new report by AEI’s Mary Habeck, which analyzes why current national security policy is failing to stop the advancement of al Qaeda and its affiliates and what the US can do to develop a successful strategy to defeat this enemy.

Friday, April 25, 2014 | 9:15 a.m. – 1:15 p.m.
Obamacare’s rocky start and uncertain future

During this event, experts with many different views on the ACA will offer their predictions for the future.   

No events scheduled today.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.