A new analysis from the Center for Medical Economics and Innovation at the Pacific Research Institute has critiqued a study from JAMA, which Senator Bernie Sanders cited in arguments for drug price controls. 

The JAMA investigation estimated that diabetes medications could be produced for $5 a month. Dr. Wayne Winegarden, co-author of the PRI brief, identified several flaws in the analysis that could pose risks to patient health.

One issue highlighted is the study's failure to define "excessive profits," which is central to its argument for price reductions, according to an article on PR Newswire. This oversight potentially undermines the necessary recoupment of drug development costs.

The brief also points out systemic issues in drug pricing, notably the role of pharmacy benefit managers who negotiate discounts but whose practices may lead to patients facing higher out-of-pocket expenses based on inflated list prices. This occurs despite a decline in net prices after discounts. 

Furthermore, the PRI critique discusses the substantial investment in research and development required for drug development, which the authors believe the JAMA study underestimates. The pharmaceutical industry invested $101 billion into research and development in 2022, contrasting sharply with the costs suggested by the JAMA study.

"Given the methodological flaws and data errors, the conclusions of the study are inaccurate and provide no useful information to health care professionals, patients, or policymakers. Compounding these inaccuracy problems, the authors fail to consider the tradeoffs that inherently arise from alternative policies," the PRI brief authors wrote.