Rx for Less

BIOTECH STARTUPS SEEK TO MAKE DRUG PRICES MORE AFFORDABLE

- ABRAHAM JEWETT

The first thought to cross many American’s minds when coming to terms with a chronic illness isn’t whether they will live, but whether they – and their families – can financially survive.

In addition to lacking universal healthcare, the U.S. also has prescription drug prices that are on average 2.56 times higher than other countries around the world. That number increases to 3.44 when dealing with name brands, according to a study by RAND, a nonpartisan, nonprofit research organization.

“Brand-name drugs are the primary driver of the higher prescription drug prices in the United States,” said Andrew Mulcahy, lead author of the study and a senior health policy researcher at RAND, in a news release. “We found consistently high U.S. brand name prices regardless of our methodological decisions.”

While the health care discussion has dominated U.S. airwaves for years, the issue has become even more hotly debated during COVID-19 times.

The health crisis has not only disrupted insurance coverages, provider coverages, and public health, but has also brought to the forefront the racial and ethnic disparities that exist in the U.S. health care system.

Even prior to the global pandemic, U.S. healthcare spending reached $3.6 trillion in 2018, with 14% of that devoted to the purchase of prescription drugs.

A Cheaper Way

Biotech companies, such as EQRx, meanwhile, are researching ways to create and sell pharmaceutical drugs at lower costs, making them more affordable for everyday Americans.

EQRx announced earlier this year that it had raised $500 million in Series B financing, increasing its total funding to $750 million.