[Ip-health] A Solution to Corruption and Inefficiency in Drug Trials

[Liz Chimienti]

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[ Picked text/plain from multipart/alternative ]

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Publicly Funded Drug Trials Will Counteract the Corruption and Inefficiency=
 of Testing


Greater transparency in testing process would lead to more accurate disclos=
ure of benefits and hazards

Recent evidence of the negative side effects of prescription drugs such as =
Zyprexa have shaken the American public's faith in the effectiveness and sa=
fety of the drug testing process. A report released today by the <http://sa=
lsa.democracyinaction.org/dia/track.jsp?v=3D2&c=3DWmR%2FMLWgbeNDVY86b5AgeVh=
jIibyiHCf>Center for Economic and Policy Research (CEPR) outlines a proposa=
l for a new system of publicly financed clinical drug trials that could sub=
stantially reduce the inefficiency and conflicts of interests inherent in t=
he current system of drug testing. The cost of the drug trials would be cov=
ered by reduced payments for prescriptions drugs under Medicare Part D and =
other government programs. The report presents calculations suggesting that=
 a system that publicly funds private contractors to conduct the clinical t=
rials of new prescription drugs would lead to substantial savings for the g=
overnment in addition to public health benefits.

In the report, "<http://salsa.democracyinaction.org/dia/track.jsp?v=3D2&c=
=3DJmzpIQE307%2BM4pqKmIXiscL8SgLqF6UZ>The Benefits and Savings from Publicl=
y-Funded Clinical Trials of Prescription Drugs," CEPR co-director Dean Bake=
r argues that establishing a network of independent companies working on lo=
ng-term federal contracts would eliminate the conflicts of interest in the =
current structure of the pharmaceutical industry. These conflicts of intere=
st often prevent the full and accurate disclosure of the results of drug te=
sting. Under the present system, the pharmaceutical companies have a strong=
 incentive to exaggerate a drug's benefits and conceal potential dangers, a=
s arguably happened with the arthritis drug, Vioxx.

In order to ensure full disclosure of the results of these trials, the fede=
ral contracts for testers would require that all results be available to th=
e public and posted on the internet. Public access to this data should elim=
inate needless duplication in the drug development process and also facilit=
ate comparative assessments of like drugs.

The report goes on to demonstrate how this new system could save state and =
local governments in excess of $120 billion dollars over the course of 10 y=
ears. If comparable price reductions are applied to the private sector as w=
ell, the savings would total over $900 billion.

Other potential benefits include:

-    Publicly funded trials may be conducted at a lower cost than industry-=
sponsored trials since there would be no incentive for independent contract=
ors to overpay participating physicians as a way to encourage them to presc=
ribe the company's drugs.

-    Research could advance more quickly since all results from publicly fu=
nded trials would be immediately and fully disclosed, thus allowing other r=
esearchers to benefit from this information.

-    Lower drug prices would substantially reduce the waste associated with=
 efforts by insurers and other third-party payers to restrict the use of hi=
gh-priced drugs.

The report, in its entirety, can be found <http://salsa.democracyinaction.o=
rg/dia/track.jsp?v=3D2&c=3DqNgNZR1LbqRSnAQUWSY%2FyVhjIibyiHCf>here.

The Center for Economic and Policy Research is an independent, nonpartisan =
think tank that was established to promote democratic debate on the most im=
portant economic and social issues that affect people's lives. CEPR's Advis=
ory Board of Economists includes Nobel Laureate economists Robert Solow and=
 Joseph Stiglitz; Richard Freeman, Professor of Economics at Harvard Univer=
sity; and Eileen Appelbaum, Professor and Director of the Center for Women =
and Work at Rutgers University.


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