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I’m working on a economics question and need guidance to help me learn.

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What are the barriers to entry in the pharmaceutical industry?

The pharmaceutical industry is often heavily regulated. Why? What are the pros and cons of such regulations? For example, FDA.

  1. Based on the article titled “Novartis Strikes Pay-for-Performance Deals for Heart-Failure Drug Entresto,” discuss why such “pay-for-performance” approach of pricing pharmaceuticals would work for some drugs but not all. What are the challanges?

Based on the article titled “Here’s What the Feds Can Do to Cut Drug Prices,” describe at least 3 strategies to reduce drug prices.

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