Experts Say Overall Benefits of Investment in
Pharmaceuticals Outweigh Spending
New Analysis of Literature Released at Briefing Today
WASHINGTON, DC (January 29, 2002) — Consumers
and the health care system overall are reaping big benefits because
of investment in new pharmaceuticals, according to a body of recent
economic studies presented today at a briefing at the National Press
Club.
The briefing, hosted by the American Enterprise Institute
(AEI) and the National Pharmaceutical Council (NPC), marked the
release of a new economic analysis of the literature, titled Assessing
the Impact of Pharmaceutical Innovation: A Comprehensive Framework,
by Jack Meyer of New Directions for Policy. Also being released
is a Health Affairs Primer on "The Value of Rx Innovation,"
compiling relevant work featured in the journal over the past two
years.
"The findings of these researchers really go
against the 'conventional wisdom' on how we can control health care
spending" said Meyer, one of the panelists. "Critics have
often pointed their fingers at drug spending as an inappropriate
driver of health care costs, but this research shows that even though
pharmaceuticals can be expensive, they are an effective way to keep
people healthy, productive and out of the hospital in the long run."
Meyer's analysis revealed a consistent theme - that
the benefits of new drugs outweigh the costs, often in dollar savings
as well as in improved health and quality of life.
"We can now quantify the payoff from new drugs,
and it's huge," said Meyer.
According to Frank Lichtenberg of Columbia University,
another presenter at the briefing whose work was reviewed in Meyer's
analysis, Americans born in 1995 can be expected to live 22 years
– or 41 percent – longer than those born in 1920. Reductions
in premature death are over five times greater in diseases with
many new drugs available to treat them than for those with fewer
new drug treatment options.
"Anyone who is serious about controlling health
care spending should pay careful attention to the emerging research
on the benefits of pharmaceuticals," said Dr. Jack Calfee of
AEI.
A study sponsored by the Agency for Healthcare Research
and Quality, also reviewed in the Meyer analysis, found that greater
use of a blood-thinning agent could prevent 40,000 strokes each
year, saving $600 million annually in health care costs. The average
annual cost of the drug and monitoring was $1,025, compared to the
$100,000 lifetime cost of stroke treatment.
"There is increasing evidence that newer medicines
provide significant benefits to patient health, worker productivity
and the overall economy," said Karen Williams, president of
NPC. "Those wishing to get the most health for their health
care dollar should view new therapies as a sound investment."
Since 1953, NPC has sponsored and conducted scientific,
evidence-based analyses of the appropriate use of pharmaceuticals
and the clinical and economic value of pharmaceutical innovation.
NPC provides educational resources to a variety of health care stakeholders,
including patients, clinicians, payers and policy makers. More than
20 research-based pharmaceutical companies are members of the NPC.
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Please direct all media inquiries to Pat Adams, phone
(703) 620-6390.
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