101117Re: Obama and the 'Drug Killer'
- Nov 3, 2008John Williams wrote:
> Drug development is an industry with high fixed costs. Once those fixed,What if there were government incentives/grants to develop the pharms?
> or sunk, costs have been committed, the drugs are sold for the price that
> the market will bear. According to the expert who wrote the article, the
> more socialized markets settle on a lower price than the less socialized
> markets. If all markets were socialized, then all the prices would be lower.
> Then companies would not be able to justify committing the fixed costs
> on future development of some drugs, and some drugs would not be
It seems to me that the free market does a poor job in this regard;
emphasizing stuff like boner pills because they're wildly profitable
and in recycling previously developed drugs with slight adjustments in
formulation or in combination with other drugs. There is a huge
disincentive to develop something like a cure for the cold because
over the counter remedies are a hugely profitable industry.
- << Previous post in topic Next post in topic >>