How should the value of new drugs be determined?

The amounts spent on drugs in the Canadian health care system have risen sharply over the last few years. In this context, the cost of new patented drugs is a source of controversy. According to an increasingly widespread view, most patented drugs, other than a few truly innovative products, are just “me-too” copies, with no value added, that cost less to produce than we are told. How much are new drugs really worth? And who should end up deciding whether their use is justified?


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