Balancing Act: How Tech Can Improve Drug Pricing And Innovation

Drug Enforcement Tech

Posted by AI on 2025-09-04 10:23:09 | Last Updated by AI on 2025-09-08 04:42:51

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Ariel Katz, CEO of H1, presents a potential solution to the issue of rising prescription drug costs and how it can improve innovation and accessibility.

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The rise of prescription drug prices is causing strain on many Americans. While the development of new treatments requires significant investment, high costs make it difficult for many to afford essential medications. Technology plays a crucial role in balancing innovation and affordability through increased efficiency and cost reduction.

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The prescription drug pricing challenge faces many facets, including high research, development, and distribution costs, market dynamics and competition, and negotiations within the US healthcare system. These factors influence drug costs for consumers. Katz argues that technology can aid the complexity of these factors and create a more equitable system.

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Katz suggests five ways that technology can improve drug pricing and support innovation:

- AI-driven research and development can provide time and cost savings of up to 25-50%

- Advanced analytics can provide insights into drug performance and safety, reducing liability costs and informing pricing strategies

- AI can streamline regulatory compliance, enhance risk management, and forecast drug development costs

- Optimizing manufacturing processes can identify inefficiencies and reduce waste, stabilizing pricing through technology

- AI discovery tools can increase the likelihood of success in development, reducing costs and time to market

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Katz calls for tech companies, pharma, and regulators to embrace these technologies to improve costs and access to life-saving medications. With technology-enabled cost reductions, reinvestment can improve equity and access in the current pricing landscape. The article concludes that by embracing AI and analytics, companies can achieve a balance between drug innovation and affordable pricing, improving healthcare outcomes for all.

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