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Editorial
. 2024 Oct;13(10):e240105.
doi: 10.57264/cer-2024-0105. Epub 2024 Sep 10.

Why is the market design for innovative pharmaceuticals not well understood?

Francisco Olivença  1 , Jose Diaz  2 , Sreeram V Ramagopalan  1   3 , Louis P Garrison Jr  4
Affiliations
Editorial

Why is the market design for innovative pharmaceuticals not well understood?

Francisco Olivença et al. J Comp Eff Res. 2024 Oct.
No abstract available

Keywords: innovation; market design; pharmaceuticals; pricing; research and development costs; value.

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Figures

Figure 1.
Figure 1.. Illustration of the ‘blockbuster model’.
The model relies on revenues arising from the small fraction of successful drugs to support high risk, high reward investment in the entire industry which has a high rate of failure. As such, it is irrelevant to calculate the cost of developing a single drug. Adapted from Grabowski et al. with permission from [15]. R&D: Research and development.
See this image and copyright information in PMC

References

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    1. Brinkhuis F, Goettsch WG, Mantel-Teeuwisse AK, Bloem LT. Added benefit and revenues of oncology drugs approved by the European Medicines Agency between 1995 and 2020: retrospective cohort study. BMJ 384, e077391 (2024). - PMC - PubMed

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