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How Medicare's Drug Pricing Can Hurt R&D

Research and development is critical to the pharmaceutical industry. If drug prices increase, firms have more revenue -- and more incentive to invest in R&D. Allowing the federal government toset drug prices for Medicare Part D would reduce pharmaceuticalresources for medical innovations. The primary medical conditionaffecting a rising number of people aged 65 and over described hereis Alzheimer's disease.
United States New York Frank Lichtenberg Cheryls Smith America Ph Columbia University Graduate School Of Business

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