Big Pharma’s Falling R&D Investment Helps Small Biotechs - 07/29/2011 - The Burrill Report

BDO has a new report that examines Big Pharma's cuts to its R&D budget, and investigates the trade off between cutting internal R&D and filling the pipeline by doing deals with smaller firms.
(This is the subject of a research project that I hope to execute within the next year.)

Obamacare Threatens Solvency of Colorado's Health Insurers

Obamacare encourages states to impose too much political power over health plans.  My column in the Pueblo Chieftain is here.

Why Don't Health Exchanges Work?

A previous entry reported and discussed the lackluster — basically non-existent — results of the Utah Health Exchange, and promised to explain why unsubsidized exchanges are unlikely to attract significant numbers of beneficiaries from the small-group market. The answer, I believe, is pretty straightforward: The administrative costs of operating an exchange plus the administrative costs to a small business of migrating to the exchange are almost certainly greater than the administrative costs of participating in the traditional small-group market (or taking account of other “work arounds” promoted by some insurance producers). Therefore, unless an exchange is subsidized from non-exchange sources (as per Obamacare), it will not attract many participants.

While straightforward, this conclusion is not necessarily intuitive.

Read the entire column (and comments) at John Goodman's Health Policy Blog.

A New Bargain for Drug Approvals - But for the Wrong Reason

The Wall Street Journal recently ran an op-ed by Professors Michelle Boldrin and S. Joshua Swamidass that proposed "A New Bargain for Drug Approvals" (July 25).  They recommended that the Food and Drug Administration allow new medicines to be used after they had been demonstrated "safe," but not necessarilly "efficacious."  I liked the article, and agree that the reform which they recommend would be very beneficial. However, I have a philosophical problem with one of their reasons.

Why the Utah Health Exchange is No Model for Health Reform

The Utah Health Exchange is the model some conservatives believe can be used to push back against Obamacare. Witness the Wall Street Journal (July 16) soundly rejecting regulatory guidance on what the Administration is now calling "Affordable Insurance Exchanges," but encouraging governors to get on the exchange bandwagon, in the hope they can build free-market exchanges that will blunt Obamacare's worst effects.

80% of Employers Concerned About Health Reform’s Administrative Obligations; 30% Think Exchanges Will Offer Worse Coverage

A new survey by Lockton, Inc.’s Health Reform Advisory Practice reports that 80 percent of respondents are concerned about federal health reform’s additional administrative obligations.

Read my entire article at Forbes.com: The Apothecary.

The U.S. Government Will Like the Express Scripts-Medco Takeover

Medco traded at a ten percent discount to the deal terms all day Thursday, reflecting skepticism that the U.S. government will let the deal happen. I don't see why. The government favors concentration in the health sector.

Read my latest column at Forbes.com: The Apothecary.