“Drugs and Value”, a Financial Times Editorial

The Financial Times editorial “Drugs and value” tries to garner sympathy for both sides of the UK National Institute of Health and Clinical Excellence (NICE) barring Genentech’s (DNA) Avastin debate. Healthcare systems must get value for their money, but innovation should not be stifled. I detailed these arguments in "UK Provides No Public Funding for Genentech’s Avastin Users".

The FT suggests that a very strict NICE would weaken the “UK’s historical strength in clinical expertise, research and trials.” I disagree. The British pharma and biotech industries are just as dependent on the US for most of the profits that support research as the American, German and Swiss companies. The only experience the UK might lose is having their own people serve in clinical trials.

Next the FT calls for prices of biotech drugs to vary by country, with the banning of consumer purchasing across borders. They call that “leakage.” Basically, the FT is asking the US to continue subsidizing the world. Why should drug prices in the US be higher the any other country? I don’t agree with the argument that country specific pricing (as in HIV drugs) promotes universal access. I say the American people have suffered enough to the rest of the world’s benefit.

The editorial does contain two points that I agree with. They criticize Roche (Genentech’s marketing partner) for not providing additional data to support Avastin, and they say pricing needs to be more flexible. Roche refused the request for more data because they did not believe Avastin would pass the value test. The FT is recommending the either initial prices or volume pricing be lower for cancer drugs.

I believe the FT is misguided in trying to link consumer healthcare expenditures with pharmaceutical and biotech research. The UK is free to fund its university research programs and even give grants to biotech companies separate from the National Health Service. Instead of asking the US to subsidize the world’s drug use, the FT should ask the US to adopt NICE and promote value worldwide.

No Disclosures.

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