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Table 2 Nine proposed criteria to evaluate policy proposals addressing the high price of branded prescription drugs in the U.S

From: Branded prescription drug spending: a framework to evaluate policy options

Criterion Rationale
Incentivize drug companies to invest in research & development We assume that policies that increase manufacturer revenues will increase levels of R&D.
Promote R&D and marketing of high value drugs Certain drugs provide greater value than other drugs as measured by things incremental cost effectiveness ratios or quality adjusted life years.
Encourage uptake of high value products Policies that encourage uptake of high value drugs by promoting value decision making by patients, physicians, and payer.
Reduce financial barriers to drugs Policies that reduce drug prices can facilitate greater access to drugs by reducing the financial burden of drugs.
Lower the overall spending on drugs and medical care Policies that lower drug prices; reduce drug utilization; or give providers the proper incentives to substitute drugs for other clinical services will lower spending overall and for drugs
Administrative burden We assume that policies requiring the FDA or companies to perform additional tasks will add to the administrative burden.
Facilitate entry to generic market Policies encouraging providers to choose the less expensive generic can increase demand of generics on the market
Requirement for legislation We assume any additional legislative change will prove difficult and policies significantly impacting the pharmaceutical industry will be most difficult to enact.
Potential for unintended consequences We assume that there will always some level of unanticipated economic or clinical consequences that result from policies that change the rules or alter stakeholder incentives.