Will Price Controls Secretly Harm Health Advances
Potential Impact on Innovation
Innovation in healthcare is a critical driver of improved patient outcomes and quality of life. The development of new drugs and medical technologies often requires substantial financial investment. According to the Pharmaceutical Research and Manufacturers of America, the average cost to bring a new drug to market is approximately $2.6 billion1. When price controls are imposed, the reduced potential for recouping these costs can lead to a significant decrease in the number of new drugs developed. This is particularly concerning in areas such as rare diseases or conditions with smaller patient populations, where the financial incentives are already limited.