Recorded presentation

Donald Light, Princeton University, 10 Adams Drive, Princeton, NJ 08540, 609-924-9220, dlight@Princeton.EDU

This presentation will review evidence that patented drugs at Canadian, British and similar price levels in other affluent countries pays for research as well, especially basic research to discover breakthrough new molecular entitites (NMEs). Thus, efforts by states, governors, mayors, and patient advocacy groups to pay less for patented drugs are reasonable. There is no evidence that other affluent countries are "free riders" or that Americans are paying for the research in other countries, unless one uses peculiar accounting methods. However, the Bush administration has declared that they are "free riders" and has declared war on the prices in other affluent countries. Using the threat of trade sanctions, the present government is replacing free trade with prohibitions against "reimportation" and bilateral agreements. These efforts constitute a back-door strategy to counter efforts by voters and politicians to make drugs more accessible and affordable. They will also raise prices for less affluent countries, limit access, and raise profits.

Learning Objectives: At the conclusion of the session, the participant in the session will

• recognize how the U.S. policy for international trade is designed to raise drug prices abroad.
• understand how price controls on drugs are compatible with progress in drug R&D.
• understand how the U.S. policy and trade barrier adversely affect access to essential medicines in developing countries.

Presenting author's disclosure statement:
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.

Recorded presentation