What if drugs were priced based on their effectiveness?

Author Topher Spiro argues that drugs should be priced based on their effectiveness.

In August, the FDA approved a drug called Repatha that lowers cholesterol. This drug is a true innovation that may benefit millions of Americans, but it comes with a steep price tag of $14,100 a year — double its price in Europe. And according to the FDA, Repatha’s impact on heart attacks and stroke is still being studied.

Then there’s Farydak, a new blood cancer drug, which the FDA approved against the initial recommendation of its independent experts. According to the FDA, Farydak slows the progression of the disease by only five months, and it comes with severe side effects. The cost? Nearly $10,000 a month.

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