smackaholic wrote:KC brings up the artificially low price other countries pay for drugs. He implies that there is some sort of conspiracy here to jam americans into paying artifically high payments.
I doubt this is the case. If it was, Pfeizer and all the rest of the bandits would have off the charts earning.
They don't, to the best of my knowledge.
I think other countries get artifically low prices because, basically, they simply tell the drug companies, it's all they can pay. The drug companies figure they either take the deal which still nets them a bit of a profit on the actual manufacture of said drugs or risk that country simply counterfeiting them. In the US, they have protection against this with a little thing called patent law, therefore, they get all the RD cost's from us.
My solution to this is to tell countries that can afford to pay more such as Canada/Europe/a few other places, they will. if they are caught counterfeiting, we slap considerable tariffs on every thing we import from them.
All of the countries you mentioned have negotiated pricing with the Big Pharma companies.
It's a take it or leave it deal that the drug companies accept.
Here in US the idea has been floated as well, but the drug lobbiest have managed to block it by saying that it will destroy their R&D pipeline.
Basically they say we're financing their R&D beacuse they don't make enough margin off ROW.
It has zero to do with counterfeiting