Is Innovation Without Affordability Innovation? 5 Realities Regarding U.S. Pharmaceutical Innovation and Pricing

This report from the UNC Center for the Business of Health explores the growing gap between pharmaceutical innovation and affordability in the United States. Based on insights from a 2024 expert symposium, it highlights five key challenges: defining drug value, system complexity, conflicting stakeholder actions, rising costs for payors and employers, and limited policy tools. While recent efforts such as the Inflation Reduction Act have aimed to control prices, they do not fully address deeper structural problems. The report argues that any path forward will require greater transparency, shared tradeoffs, and new frameworks that balance cost, access, and innovation.