tag:blogger.com,1999:blog-8537995.post109701703018374208..comments2023-10-29T10:54:58.681-04:00Comments on Vox Baby: Prescription Drug Re-importationAndrewhttp://www.blogger.com/profile/13514024573333057559noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-8537995.post-1134267314629503812005-12-10T21:15:00.000-05:002005-12-10T21:15:00.000-05:00It's not clear that the various posters know why d...It's not clear that the various posters know why drugs are cheaper in some other countries than they are here in the US. I can speak only about Canada with any certainty; perhaps posters will know about other countries. In Canada, a national commission or board twice a year examines the prices charged for patented drugs in seven countries, including Italy, Switzerland, the US, etc. The Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-1097251002145451682004-10-08T11:56:00.000-04:002004-10-08T11:56:00.000-04:00William -
the differences in pricing likely hav...William -<br /> the differences in pricing likely have nothing to do with the drug companies being 'tougher' on one set of buyers than another. In poorer countries the revenue-maximizing price will simply turn out to be lower than in wealthier ones. The question is whether the government should support differential pricing systems by disallowing resale/arbitrage of drugs back to a country whereAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-1097189556225426082004-10-07T18:52:00.000-04:002004-10-07T18:52:00.000-04:00Surprisingly, the likely actual current and future...Surprisingly, the likely actual current and future main cause of high drug prices is the existence of all kinds of drug discount plans. As drug plan providers increasingly dominate the market for specific drugs, list or retail prices can be raised by the manufacturer, increasing net profits and revenues as increased revenues from drugs purchased at discount outweigh the decreased units and Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-1097184005741883302004-10-07T17:20:00.000-04:002004-10-07T17:20:00.000-04:00The main barrier to entry is the length of time it...The main barrier to entry is the length of time it takes to research, develop, test and gain FDA approval of a new drug. Even if the drug is successful, you are looking at five to ten years of costs before you see any revenue. Big pharma can afford this. Start ups often cannot.<br /><br />One way around this has been to start your research at a university, then go private if and when you are Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-1097177834613825972004-10-07T15:37:00.000-04:002004-10-07T15:37:00.000-04:00I would like to see the study that shows what the ...I would like to see the study that shows what the amount of price difference between US and Canadian drugs are due to Canadian price caps/government negotiation and what amount is due to price discrimination.<br /><br />Of course, let's not forget that Medicaid and other US government health systems also have coercive negotiations on price as well, sometimes based on a percentage of the "free Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-1097177380289471062004-10-07T15:29:00.000-04:002004-10-07T15:29:00.000-04:00Hello --
FYI, you're blog template is unreadable...Hello -- <br /><br />FYI, you're blog template is unreadable using Mozilla Firefox browser. It's only viewable with Internet Explorer. And given the security concerns with using IE, and that people are increasingly turning to Mozilla instead, probably many of your readers are having the same problem. <br /><br />Thanks!Anonymoushttps://www.blogger.com/profile/06939058225543109095noreply@blogger.comtag:blogger.com,1999:blog-8537995.post-1097173561520149732004-10-07T14:26:00.000-04:002004-10-07T14:26:00.000-04:00Hi, off topic:
I'm using Galeon (a Mozilla-based ...Hi, off topic:<br /><br />I'm using Galeon (a Mozilla-based linux browser, think of it as Firefox as far as rendering is concerned), and the background image that makes the text readable stops after about two lines of your top post. Testing with Firefox on Windows confirms it's happening with other Mozilla based browsers. Can this get some attention, please, as I'm looking forward to reading yourAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-1097160556897639872004-10-07T10:49:00.000-04:002004-10-07T10:49:00.000-04:00Anonymous Bosch,
I think your barrier to entry po...Anonymous Bosch,<br /><br />I think your barrier to entry post is correct.<br /><br />Here in Raleigh-Durham, there are lots of fledgling drug companies poping up in business parks all the time. Most are started by people coming out of the Burroughs-Welcome-Glaxo-Smith-Kline-Beecham-Bayer Big Pharma super centers. Most do initial drug or device development but need to parter with one of the Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-1097149985066479382004-10-07T07:53:00.000-04:002004-10-07T07:53:00.000-04:00Anonymous Bosch: Yes, but...
In a industry shape...Anonymous Bosch: Yes, but...<br /><br />In a industry shaped by patents, it would seem that the threat of retaliation by incumbents is much less of a problem than in the typical IO story--it doesn't strike me that pharma firms have nearly the leverage to go after rivals as say, the airline industry. Although an incumbent firm can (and I think does) lower price upon entry of a “me-too” drug, Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-1097142080250580522004-10-07T05:41:00.000-04:002004-10-07T05:41:00.000-04:00Mark,
My knee-jerk response would be very high ba...Mark,<br /><br />My knee-jerk response would be very high barriers to entry:<br /><br />"In the pharmaceutical industry, a new entrant may be faced with various hurdles erected by established businesses, such as:<br /><br />- economies of scale - manufacturing, R&D, marketing, sales,<br />- distribution product differentiation - established products, brands and relationships<br />- capital Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-1097118832958927822004-10-06T23:13:00.000-04:002004-10-06T23:13:00.000-04:00Anonymous Bosch: If the drug companies are so pro...Anonymous Bosch: If the drug companies are so profitable, then why don't we see a lot of new pharma firms? Why wouldn't a small firm with a new product decide to go it alone, rather than sell out to an established firm? I suspect the reason is that after adjusting for risk that pharma isn't so outlandishly profitable as people seem to think. If you have a better explanation, I'd be interestedAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8537995.post-1097113629677209342004-10-06T21:47:00.000-04:002004-10-06T21:47:00.000-04:00Another reason drug prices are lower is that Canad...Another reason drug prices are lower is that Canada limits pain and suffering awards in lawsuits to $250,000.<br /><br />In the US, drug companies face unlimited liability on each lawsuit.Jakehttps://www.blogger.com/profile/09208548778259311459noreply@blogger.comtag:blogger.com,1999:blog-8537995.post-1097108866342392422004-10-06T20:27:00.000-04:002004-10-06T20:27:00.000-04:00Clearly the safety concerns are ridiculous. Howeve...Clearly the safety concerns are ridiculous. However, I think there are compelling arguments that U.S. patent law grants pharmaceutical companies market power far in excess of what is necessary to recoup R&D costs.<br /><br />Folks have made a variety of points in the comments of the original op-ed. Widespread abuse of the patent system (patenting very similar compounds when patent protection is Anonymousnoreply@blogger.com