Economics of Innovation

Since the Office of Health Economics (OHE) published a critique of CBO’s new simulation model of new drug development late last year, the U.S. public sector think tank has made three improvements to its methodology. We review these updates, assess their impact, and highlight the key remaining limitations of the modelling approach, concluding that policymakers should still exercise considerable caution in relying on its predictions.

Cookson, G. and Hitch, J.

Consulting Report
June 2022

In recent years, U.S. policymakers have been considering reforms to tackle high and rising prescription drug spending, including unprecedented direct limits on prices and price growth for top-selling medicines. By affecting expected prices and revenues, this type of reform will impact biopharmaceutical companies’ incentives to innovate. However, the magnitudes and timings of impacts on the numbers of new drugs coming to market are unclear.

As the OHE continues to expand, we have another opportunity to welcome economists at a junior level to our team of talented researchers. Our team get the opportunity to work on a wide variety of policy-relevant projects across the health and life sciences...

Global TB deaths are increasing. CGD and OHE set out a “Market-Driven, Value-Based, Advance Commitment (MVAC)” that would create and guarantee a market for a breakthrough short, universal TB regimen tackling MDR strains. An earlier 1998 OHE publication argued for the UK to move from...

A new publication by Kourouklis and Gandjour (2022) investigates the impact of pharmaceutical spending on domestic early-stage pharmaceutical innovation in Europe. They find that European spending does impact the number of patent applications and that European pharmaceutical spending has an impact on European countries attracting early-stage development.

Towse, A. and Fenwick, L.

December 2021

There has been increasing emphasis by regulators on approving potentially important treatments rapidly, notably through accelerated access schemes. 

As US policymakers consider the potential implications of the drug pricing reforms contained within the Build Back Better Act, OHE releases a critique of the Congressional Budget Office scoring, demonstrating that the estimates are highly uncertain and policymakers should exercise caution when relying upon them.

OHE publishes a consulting report on an expert consensus programme investigating the most appropriate payment models for multi-indication therapies.

Professor Margaret Kyle will deliver the Annual Lecture of 2021 on October 14th, 2021, virtually.

Cole, A., Neri, M. and Cookson, G.

Consulting Report
November 2021

For the growing number of multi-indication medicines, access may be delayed or even denied due to challenges in linking payment with a medicine’s value across those indications. We assembled a broad range of stakeholders to work toward consensus on the challenges and solutions which promote better patient access and sustainable health care and innovation.

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