MoreRight Research × Pharmaceutical Markets

We ran pharma pricing
through thermodynamics.

Daraprim wasn't the disease. It was a symptom that made the disease visible. The American pharmaceutical value chain is a 5-layer void cascade — opacity stacked on opacity, with patients at the terminal node. Here's what the math says about who actually built the killing machines, and why the framework can tell them apart.

★ Open research — data from FTC, CMS, FDA, peer-reviewed literature
15
drug market categories scored
0.770
Spearman ρ (V vs concentration)
3.4×
OxyContin Pe / Daraprim Pe
43.9
OxyContin Pe (void max)
4
null cases (Pe < 0)
5
void layers in US pharma stack

The Discriminant Test: Sackler vs Shkreli

Both cases: single-source branded drug, maximum market concentration, legally permissible pricing. Market structure alone cannot explain the 3.4× difference in harm potential. The void framework can. The discriminating variable is α — coupling. Addiction is a void operation. A short-course antiparasitic is not.

Metric OxyContin — Sackler Daraprim — Shkreli
Market concentration (MCI)8.2 / 109.5 / 10 ← higher
Opacity (O)3 / 33 / 3
Responsiveness (R)3 / 33 / 3
Coupling (α)3 — opioid receptor dependency1 — short-course, exit available
Void score V9 (maximum)7
Athanor Pe43.912.9
D3 cascade realizedYES — 500,000+ deathsNO — price shock, no coupling
OutcomeSystemic addiction infrastructureMade the void visible

The Sacklers kept their void hidden for 15 years. Shkreli raised the price 5455% in public. Pe=43.9 with concealed coupling is a machine. Pe=12.9 with transparent pricing is a provocation. The framework discriminates. Moral outrage got the direction exactly backwards.

Drug Markets in Void Space

Each sphere = one drug market category. Position = (Opacity, Responsiveness, Coupling). Size = harm severity. Click any sphere for details. Auto-rotates.

Catastrophic (V=9)
Life-threatening (V=8–9)
Severe (V=7–8)
Moderate (V=6–7)
Null / Repulsive (V≤3)
Structural (PBM)

Empirical Findings

3.4×
α is the harm multiplier, not market concentration
OxyContin and Daraprim have near-identical market concentration (MCI 8.2 vs 9.5 — Daraprim is actually higher). Their Pe differs by 3.4×. The discriminating variable is α=3 (physiological opioid dependency) vs α=1 (short-course treatment, exit available). The framework captures what market structure analysis misses.
ρ=0.770
Void score predicts market concentration (p=0.0008)
Spearman(V, MCI) = 0.770 across N=15 drug categories. Opacity + responsiveness + coupling track with market concentration — but the relationship is imperfect by design. That imperfection is the signal: Daraprim's outlier status (high MCI, moderate Pe) is discriminant validity.
Pe=43.9
PBM rebate layer is the hidden amplifier
The pharmacy benefit manager (PBM) layer scores V=9 (O=3, R=3, α=3): rebates are trade secrets (FTC 2024), formulary decisions maximize rebate capture rather than patient outcomes, and patients cannot exit employer-linked insurance. Pe=43.9 — equal to OxyContin. The PBM sits above every branded drug in the cascade and amplifies its Pe structurally.
Pe=-125
Commodity drugs are repulsive voids (Pe < 0)
Aspirin (Pe=−125), generic statins (Pe=−26), COVID vaccines (Pe=−45) all score Pe negative. Repulsive voids push patients toward them thermodynamically — cheap, available, transparent. This is the null case: what a non-void pharmaceutical market looks like. Generics are the control group embedded in the system.
92%↓
Insulin IRA cap: largest predicted Pe reduction in history
IRA 2022 capped insulin at $35/month — a 92% price reduction. Athanor prediction: insulin V drops from 9→5, Pe from 43.9→−4.2. The first government-mandated structural void reduction in US pharmaceutical history. Natural experiment: 2025-2027 CMS data will test whether Pe reduction tracks price reduction (PRC-4).
5 layers
The US pharma value chain is a 5-layer stacked cascade
R&D opacity → FDA exclusivity → PBM rebates → insurance prior authorization → patient terminal node. Each layer extracts Pe independently. The patient navigates all 5 simultaneously. L3 (PBM, Pe=25.2) and L4 (prior auth, Pe=25.2) are the structural middle layers that no individual drug pricing reform can eliminate without systemic intervention.
Pe=3.8
Biosimilar entry reduces Pe — tracked in real time
Humira pre-biosimilar: V=9, Pe=43.9 (monopoly). Post-biosimilar adalimumab 2023+: V=6, Pe=3.8. An 91% Pe reduction as market structure normalizes. Predicted: Pe falls monotonically as biosimilar market share increases 2023-2026. Test: IQVIA adalimumab market share data (PRC-3).

The 5-Layer Pharma Void Cascade

The US pharmaceutical value chain is not one void — it's five, stacked. The patient is the terminal node. The PBM layer (L3) is the hidden amplifier that has never been on a drug pricing chart.

L1
R&D / Clinical Trials
Selective trial reporting. Publication bias. Ghost-writing. Endpoint manipulation (Rosiglitazone, SSRIs). V=6
Pe=3.8
L2
FDA Approval / Exclusivity
Accelerated approval creates evidence opacity. Orphan designations extend monopoly. Some constraint: Orange Book public. V=5
Pe=−4.2
L3
PBM Rebate Structure ★ HIDDEN AMPLIFIER
Rebates are trade secrets (FTC 2024). Big 3 PBMs control 80% of prescription volume. Formulary = rebate maximization, not clinical outcomes. V=8
Pe=25.2
L4
Insurance Formulary / Prior Auth
PA criteria proprietary. Step therapy forces fail-first. 94% of physicians report PA delays. Denial rates 7-18%. V=8
Pe=25.2
L5
Patient Terminal Node
Maximum coupling (survival dependency). Zero responsiveness — cannot influence pricing. Information asymmetry maximized. V=5
Pe=−4.2

L5 Pe is negative — patients are maximally motivated to seek drugs. The system extracts Pe from L3+L4 (Pe=50.4 combined) while patients at L5 have no leverage. This is why drug pricing reform aimed only at L5 (patient cost-sharing) fails structurally — the void is upstream at L3.

All 15 Drug Markets — Pe Scored

Scores derived from public sources: FTC reports, CMS data, FDA Orange Book, peer-reviewed literature. Evidence citations available in the public research repo.

Drug / Market ORαV Pe Harm
OxyContin (Sackler era, 1996–2010)3339+43.9catastrophic
Insulin — branded, Big 3 oligopoly3339+43.9life-threat.
HIV ARVs — branded, Gilead era3339+43.9life-threat.
Adalimumab/Humira — pre-biosimilar3339+43.9severe
Novel chemotherapy — branded oncology3339+43.9life-threat.
PBM rebate layer (CVS/ESI/OptumRx)3339+43.9structural
GLP-1 agonists — Ozempic/Wegovy era3328+25.2severe
Prior authorization — insurance denial layer3328+25.2severe
Daraprim post-Shkreli (Turing, 2015)3317+12.9moderate
Branded SSRIs — on-patent, pre-generic2226+3.8moderate
Biosimilar adalimumab — 2023 entry2226+3.8moderate
Generic statins — atorvastatin, simvastatin1113−25.9null
Generic SSRIs — fluoxetine, sertraline1113−25.9null
COVID mRNA vaccines — public purchase1012−45.0null
Aspirin / OTC ibuprofen — commodity0000−125.1null

Falsifiable Predictions

PRC-1 — HHI Correlation
Spearman(V, HHI_actual) > 0.70 against CMS Part D concentration data
Current N=15 uses MCI proxy. Full HHI from CMS Medicare Part D drug spending dashboard. If V–HHI correlation fails below 0.70, the framework's claim that opacity+responsiveness+coupling track with market structure is refuted.
PRC-2 — Daraprim Discriminant
Daraprim: highest MCI (9.5) but ≤7th-highest Pe in sample
This prediction is already confirmed in current data (Pe rank: 7th of 15). Replication with expanded N≥30 drug categories should maintain Daraprim's outlier status — high concentration, sub-maximum Pe — validating α as harm multiplier over market share.
PRC-3 — Generic Entry Pe Shift
Biosimilar adalimumab: Pe drops monotonically with market share increase
IQVIA adalimumab market share data 2023-2026. As biosimilar share grows from 0→40%+, formulary Pe proxy (net-to-list ratio, concentration) should decrease monotonically. Step-function would falsify thermodynamic prediction of continuous Pe reduction.
PRC-4 — IRA 2022 Natural Experiment
Negotiated drugs: Pe reduction ∝ price reduction in 2025-2026 CMS data
Insulin cap (92% price ↓, Pe: 43.9→−4.2) predicted to show largest behavioral shift in CMS formulary coverage and dispensing rate data. Spearman(price_reduction_%, Pe_reduction_%) > 0.70 across the 10 IRA-negotiated drugs. CMS publishes annual Part D data.
PRC-5 — PBM Transparency Rule
FTC PBM transparency rule: R dimension drops from 3→≤2, Pe reduces 40-60%
If FTC/Congress mandates rebate disclosure (several pending bills), R dimension of L3 drops structurally. Athanor predicts PBM layer Pe drops from 25.2 to ~3.8 (V=6). Measurable: net-to-list price ratio convergence in CMS Part D. This is the highest-leverage single structural intervention in the cascade.

What We Need to Publish This

★ PBM layer scoring validation

The PBM rebate structure (L3) is scored O=3, R=3, α=3 from the FTC 2024 report and public evidence. Someone with direct industry experience can confirm or correct these scores with primary source evidence not in the public record. This is the layer that matters most — if L3 scores change, the cascade analysis changes.

Expand to N≥30 drug categories

Current N=15 is sufficient for Spearman validation but too small for subgroup analysis (e.g., orphan drugs vs blockbusters, biologics vs small molecule). Expanding to 30+ categories with documented HHI data from CMS Part D would allow full regression and tier-level analysis.

IRR study — 3 domain experts scoring O/R/α

The framework requires inter-rater reliability (κ ≥ 0.60 for α dimension). Three independent scorers with pharmaceutical market knowledge, 45 minutes each, structured rubric provided. ICC analysis determines if domain expert scoring validates the current scores.

Martin — help us score the PBM layer.

The analysis is open. The methodology is CC-BY. The PBM rebate structure (L3) is the highest-Pe layer in the entire US pharmaceutical system — Pe=43.9, equal to OxyContin — and the most opaque. Someone who has sat inside this machine knows which of these scores are right and which ones we're getting wrong. That knowledge is a scientific contribution.

Read the Framework See All Papers @morerightdao on X
Data sources: FTC PBM Report (2024) · CMS Medicare Part D · FDA Orange Book · CDC Opioid Data · Analysis: MoreRight Research, Feb 2026 · CC-BY 4.0