Why Price Controls Could Sabotage Health Innovation Today
Real-World Impact of Price Controls
Countries that have implemented strict price controls often face significant delays in the availability of new drugs. For instance, in Canada, where price controls are in place, new drugs are introduced to the market an average of 6-12 months later than in the United States2. This delay can mean the difference between life and death for patients awaiting groundbreaking treatments.
Moreover, price controls can lead to a decrease in the variety of drugs available. Pharmaceutical companies may choose not to launch a new drug in a market where they cannot charge a price that covers their costs and provides a profit. This limits the options available to patients and healthcare providers.
The Economic Implications
Beyond the impact on innovation, price controls can have broader economic consequences. The pharmaceutical industry is a significant contributor to the economy, providing high-skilled jobs and fostering economic growth through innovation. In the United States alone, the biopharmaceutical sector supports over 4.7 million jobs3. Price controls could lead to job losses and a reduction in economic activity, further compounding the challenges faced by the industry.