Pharmaceutical Innovation

Frank Sloan has been the J. Alexander McMahon Professor of Health Policy and Management and Professor of Economics at Duke University since 1993, where he holds faculty appointments in the Department of Economics, the School of Public Policy, the Fuqua School of Business, and the School of Nursing. Before joining the faculty at Duke, he was a research economist at the Rand Corporation and served on the faculties of the University of Florida and Vanderbilt University. His current research interests include alcohol use and smoking prevention, long-term care, medical malpractice, and cost-effectiveness analyses of medical technologies. Professor Sloan also has a long-standing interest in hospitals, health care financing, and health manpower. He has served on several national advisory public and private groups, including the Physician Payment Review Commission. He has been a member of the Institute of Medicine of the National Academy of Sciences since 1982, recently chairing IOM committees on vaccine financing and cancer in low- and middle-income countries. He recently received a Merit Award from the National Institutes of Health and an Investigator Award from the Robert Wood Johnson Foundation. Professor Sloan's most recent books include The Smoking Puzzle: Information, Risk Perceptions, and Choice (2003) with Drs V. Kerry Smith and Donald H. Taylor, Jr., and The Price of Smoking with Drs Jan Ostermann, Gabriel Picone, Christopher Conover, and Donald H. Taylor, Jr. (2004). Professor Sloan received his Ph.D. in economics from Harvard University in 1969. Chee-Ruey Hsieh is a Research Fellow in the Institute of Economics at Academia Sinica, Taipei, Taiwan. He received his Ph.D. in economics from Vanderbilt University in 1990. Dr Hsieh has a long-standing interest in health economics and health policy. He is the coeditor of two other books: The Economic Analysis of Substance Use and Abuse, and The Economics of Health Care in Asia-Pacific Countries.

• 1. Introduction Frank Sloan and Chee-Ruey Hsieh; Part I. The Industry Structure of Pharmaceutical Innovation: 2. The pharmaceutical sector in health care Uwe Reinhardt; 3. The economics of research and development in the pharmaceutical industry William Comanor; Part II. Structuring Incentives for Research and Development: 4. Drugs for neglected diseases: new incentives for innovation Aidan Hollis; 5. When patents fail: finding new drugs for the developing world Stephen M. Maurer; 6. Implementing a public subsidy for vaccines Frank Sloan and Charles Eesley; 7. Ensuring the future supply of vaccines: is a National Vaccine Authority the answer? Frank Lichtenberg; Part III. Competition and Marketing: 8. Competition between generic and branded drugs Henry Grabowski; 9. The United States' experience with direct-to-consumer advertising of prescription drugs: what have we learned? Ernst Berndt; Part IV. Public Evaluation of the Benefits and Costs of Innovation: 10. Measures of costs and benefits for drugs in cost effectiveness analysis Mark Pauly; 11. Using economic evaluation in reimbursement decisions for health technologies: lessons from international experience Michael Drummond; 12. Pharmaceutical spending and health outcomes Pierre Cremieux, Denise Jarvinen, Genia Long and Phi Merrigan; 13. Pharmaceutical innovation and health outcomes: empirical evidence from Taiwan Chee-Ruey Hsieh, Kuang-Ta Vance Lo, Yichen Hong and Ya-Chen Tina Shih; 14. Conclusions and policy implications Frank A. Sloan and Chee-Ruey Hsieh.

"The second section (chapters 4-7) provides the real meat of the book. The authors do an outstanding job of making a compelling case for formulating incentives for innovation based on societal needs." - JAMA