Canada, Britain, Ireland and the Netherlands keep drug prices low by using an obscure formula that puts a price on a year of health. U.S. drug companies are taking notice.
The makers of the cholesterol-lowering drug Praluent, which first went on sale for $14,600, offered to sell it for as little as $4,500, after rebates. A new migraine drug called Aimovig, expected to cost up to $10,000 a year, went on sale for $6,900. And Zolgensma, a lifesaving gene therapy for children that its maker said might cost up to $5 million, was priced at $2.1 million.
Behind all the price restraint was a complex economic model invented decades ago to determine how to price health care fairly. These days, a little-known...
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