World Business Report Would US drug prices drop?
Sep 29, 2025
In this episode, a new initiative from the U.S. pharmaceutical lobby aims to help patients bypass pharmacies for cheaper drug prices. Patient stories reveal the struggles with soaring medical costs and the barriers created by rebates. In the gaming world, Electronic Arts is undergoing a significant $55 billion buyout, raising concerns about job cuts and industry shifts. Discussions also spotlight the future of drug pricing and potential changes in the cannabis market, highlighting the intertwining of health, economics, and technology.
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Complex Pricing Explains High US Drug Costs
- US drug prices vary by buyer, seller and supply-chain position, making simple comparisons misleading.
- Even after rebates and negotiations, US prices often remain two to three times higher than in other countries.
Middlemen Inflate Final Drug Prices
- Multiple intermediaries (insurers, PBMs, distributors, pharmacies) each take a cut, inflating patient costs downstream.
- Manufacturers control factory prices but have limited influence over final patient out-of-pocket costs.
R&D Costs Versus Blockbuster Returns
- Industry cites high R&D costs to justify prices, but blockbuster returns can far exceed development expenses.
- The challenge is balancing R&D incentives with patient access and affordability.