The Economics of Drug Price Controls
If implemented, this law will yield fewer new medicines, less safety and a weakened system of intellectual property protection.
Those foreign prices are far lower than those paid by Americans, even in economies approximately as wealthy as ours. Thus do the Europeans and others use their pricing policies to obtain free rides on the massive investments — about $1 billion per drug — needed to bring new medicines to market. . . . .
So many people think that they can get something for free. These rules would effectively impose price controls.