Abstract
BACKGROUND: We perform an econometric assessment of the impact that pharmaceutical innovation had on the burden of disease in Ireland. METHODS: We use a difference-in-differences (or two-way fixed effects) research design: we investigate whether diseases for which more new drugs were launched had larger subsequent reductions in mortality. This design controls for the effects of general economic and societal factors (e.g. income, education, and behavioral risk factors), to the extent that those effects are similar across diseases. RESULTS: New Chemical Entities launched during 1983-1997 are estimated to have reduced the total number of disability-adjusted life-years (DALYs) lost in 2015 by about 234 600. CONCLUSIONS: Pharmaceutical expenditure per DALY gained in 2015 from drugs launched during 1983-1997 was €1137, which indicates that the new drugs launched during 1983-1997 were very cost-effective, overall.