Emergent challenges and opportunities in drug discovery and commercialization

Abstract

We review medical economics literature presented at the 2023 annual AEA-ASSA convention, the largest gathering of economists worldwide. Pharmacoeconomic papers addressed a wide range of issues, including gender and racial gaps in clinical trials, hospital credit financing, drug rebates, covid-19 vaccine equality, and the opioid epidemic. Yet, they had some common identifiable themes. We examine them in the context of the “twin towers” of biopharmaceutical innovation: discovery and commercialization. Implementation outcomes and relative success of innovative solutions — whether in terms of products and services, structural design and arrangements, or policies — depend on how adequately they respond to questions and challenges that arise in drug discovery and commercialization, and who gains from them. That innovation’s beneficiaries might not equally gain from its intended advantages is another unifying theme in the reviewed literature. Against this backdrop, biopharmaceutical innovation can breed new challenges and opportunities. And health policy can perform a critical, leveling function that reduces cost, increases access, and ensures quality of biopharmaceutical solutions.

Keywords:

• Pharmacoeconomics
• biopharmaceutical
• discovery
• commercialization
• healthcare innovation
• R&D
• health policy

JEL CLASSIFICATION CODES:

• I11
• I13
• I14
• I18
• I19

Transparency

Declaration of funding

No funding was received to produce this article.

Declaration of financial/other relationships

The author has no relevant affiliations or financial involvement with any organization or entity with a financial interest in, or financial conflict with, the subject matter or materials discussed in the manuscript. This may include employment, consultancies, honoraria, stock ownership or options, expert testimony, grants or patents received or pending, or royalties.

Acknowledgements

The author acknowledges with thanks the comments and suggestions of this journal's anonymous peer reviewers, insightful conversations with Lawton Burns of the University of Pennsylvania, and the editorial assistance of Sarah Webster and Laxmi S. Dharmapuri. As with any work of this nature, the usual caveat applies.

Reviewer disclosures

Peer reviewers on this manuscript have no relevant financial or other relationships to disclose.

Correction Statement

This article has been corrected with minor changes. These changes do not impact the academic content of the article.