A recent news article compared the pricing system in France…

A recent news article compared the pricing system in France (which uses some form of External Reference Pricing in bargaining) and argued about US adopting a similar method. You can think of this as France fixing a low price for each drug rather than allowing the market to set a (potentially high) price. When addressing the impact of capping prices through ERP on drug innovation, the author argued that the effect is minimal. He states: “Critics often contend that capping prices will eliminate or slow access to new medicines. It hasn’t in France, where manufacturers sell the full spectrum of innovative drugs available in the E.U.” Give your opinion on the argument, explaining your answer. (For this question, a more comprehensive argument will score higher points.)