Special Edition 2021

OUTLOOK

Q ueries and C omments Towards transparency in the research costs of new drugs

Who pays for what in drug research? Pharmaceutical companies often jus- tify the exorbitant prices of new drugs on the basis of the high cost of re-

search and development (R&D). They are not alone, however, in taking on these expenses.The article published by Prescrire in Sep- tember 2020 ( Prescrire Int n° 221) shows that public money invested in R&D for new drugs amounts to tens of billions of euros worldwide (1). Pharmaceu- tical companies also benefit from billions in tax breaks, as with the research tax credit in France.The sums invested by public bodies are still not suffi- ciently well known, however, since the accessible data are often incomplete. This subject of transparency of research and de- velopment costs is very sensitive for pharmaceutical companies, as evidenced by the reaction of their association in France, LEEM, to the thoroughly re- searched and referenced Prescrire article. LEEM simply maintains that 80% of the cost of a new drug relates to development, funded mainly by the pharmaceutical industry, whereas 20% of the cost is research “of which a very small part is pub- licly funded” . There are no supporting references, and this clearly contradicts studies of drug R&D funding published worldwide. The solution to shedding light on this societal debate, with full knowledge of the documented facts, lies in transparency in the cost of research and development, in particular the contribution from public money, as was in fact proposed in a section of the 2020 French Social Security Finance Bill.This measure was cancelled by the Conseil Constitution- nel (the highest constitutional authority in France) for procedural reasons, but the 2021 version of the bill does contain measures promoting transpar- ency on public funding received by pharmaceutical companies. ©Prescrire ▶ Translated from Rev Prescrire November 2020 Volume 40 N° 445 • Page 871

“A red card for the journal Prescrire which, in an article entitled “Drug research: public funding, private profits”, accuses pharmaceutical compan­ ies of profiting from public funding in order to launch new drugs at exorbitant prices (1). No, the pharmaceutical industry is not siphon­ ing public funds to develop new drugs. LEEM would like to remind readers that 80% of the cost of a new drug is Development, large­ ly funded by pharmaceutical companies, the re­ maining 20% being Research, of which a very small part is publicly funded. It is all very well for the journal Prescrire to pretend otherwise, but private financing really does play a key role in clinical research in France. (…) Let us move away from this ideological trench warfare which Prescrire wants to wage with us. We are all part of one ecosystem with a single priority: giving patients access to treatments.” (our translation) LEEM (Les entreprises du médicament) (French Pharmaceutical Companies Association) 11 September 2020 at www.leem.org (our translation)

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From the non-profit journal Prescrire International , to keep you informed on the topics covered in every issue

1- Prescrire Editorial Staff “Drug research: public funding, private profits” Prescrire Int 2020; 29 (221): 303-306.

Prescrire Int • February 2021

P age 20 • P rescrire I nternational S pecial E dition 2021