Recovery and Reinvestment

The economic stimulus plan approved by President Obama in February presents a significant opportunity for the pharmaceutical industry. This opportunity is reflected in the $1.1 billion designated under The American Recovery and Reinvestment Act (ARRA) for comparative effectiveness research (CER), a sweeping federal initiative focused on improving the quality and cost-effectiveness of the nation’s healthcare system.

Responsibility for coordinating the government’s investment is in the hands of the Federal Coordinating Council for Comparative Effectiveness Research, which this summer issued a report defining the scope of the program and providing recommendations for research conducted with the stimulus funds.

Against the backdrop of a still-challenging global economy and soaring healthcare costs, the Council’s recommendations send a clear signal to Pharma companies: public funding for clinical development will be available to those sponsors that provide qualitative and quantitative data about the effectiveness of their investigational drugs, not just in comparison with placebo, but against an established standard of care.

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