July 15, 2021
Dramatic growth in drug spending in aggregate, as well as patient exposure to price at the point of sale, has prompted calls for government intervention to regulate drug prices or otherwise control their rapid increase. Developing this level of insight requires a holistic look at the entire pharmaceutical supply chain – it is not just the price of a drug that contributes to overall drug spending, but also the associated drug price inflation perpetuated via the pharmaceutical supply chain.
In order to recommend reforms of the pharmaceutical supply chain, all associated mechanisms must first be evaluated to identify key price drivers. Collaboration to modify the supply chain in a manner that truly reduces payer and patient burden is essential. And, because substantial changes to a well-entrenched model take time, the Business Group and participants of this initiative recognize that development of a new model will be a gradual process.