The Disconnect between R&D Costs and High Drug Prices

In the U.S., drugs cost approximately 2.5 times more than in other countries, with the price of new medications increasing by about 20% each year. However, studies have found no correlation between R&D costs and the launch price of drugs. Pharma companies argue that high prices fund future cures but some propose that companies are merely charging what the market can bear. Other countries negotiate drug prices based on clinical benefits, unlike the profit-driven U.S. model.