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Medicare Price Setting And The Value Of Post-Approval R&D Spending

 
• By Cathy Kelly

Will scrutiny by the Centers for Medicare and Medicaid Services eventually lead to shifts in investment away from improving older drugs toward developing new products? 

Medicare word cloud

One of the more prominent arguments against the Medicare drug price negotiation program is that by limiting the number of years that products can be marketed before price caps are imposed, the scheme discourages development of additional indications.

New research on the 10 drugs selected for the initial round of negotiation both reinforces and complicates that narrative.

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