Comments on: Drug prices help devious politicians http://news-political.com/2009/09/22/drug-prices-help-devious-politicians/ Thu, 18 Mar 2010 18:34:16 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Mike http://news-political.com/2009/09/22/drug-prices-help-devious-politicians/comment-page-1/#comment-1188 Mike Tue, 22 Sep 2009 15:01:20 +0000 http://news-political.com/?p=5278#comment-1188 The foreign sales is even more convoluted than the article suggests. Canada figures out what it takes to manufacture the drug - and is only willing to pay that cost plus a slight profit, and no recoupment of the Research and Development costs. Brazil does likewise - but often will use a threat of "national urgency" that if this new modern drug isn't available at fire-sale prices - they will violate the patent and make the drug on their own. (Then the big drug companies know that production will be ramped up and there will be a black-market of the "generic drug" that will undercut their own sales ...so the drug company concedes to the extortion of selling the drug at cut rate prices to some other companies. And little mentioned - many "generic" drugs are cheaper in the US than in Canada ...and Canadians are coming south to buy them while Americans try to get the discount pricing on the modern drugs. Ultimately, we are likely to see the drug companies give up R&D ...why produce new/modern drugs only to be accused of "profiteering"? The foreign sales is even more convoluted than the article suggests. Canada figures out what it takes to manufacture the drug – and is only willing to pay that cost plus a slight profit, and no recoupment of the Research and Development costs. Brazil does likewise – but often will use a threat of “national urgency” that if this new modern drug isn’t available at fire-sale prices – they will violate the patent and make the drug on their own. (Then the big drug companies know that production will be ramped up and there will be a black-market of the “generic drug” that will undercut their own sales …so the drug company concedes to the extortion of selling the drug at cut rate prices to some other companies.

And little mentioned – many “generic” drugs are cheaper in the US than in Canada …and Canadians are coming south to buy them while Americans try to get the discount pricing on the modern drugs. Ultimately, we are likely to see the drug companies give up R&D …why produce new/modern drugs only to be accused of “profiteering”?

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