101120Re: Obama and the 'Drug Killer'
- Nov 3, 2008On 3 Nov 2008 at 21:48, Doug Pensinger wrote:
> John Williams wrote:Frankly, sounds like a reasonable use of cash. Offer money for drug
> > Drug development is an industry with high fixed costs. Once those fixed,
> > 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
> > developed.
> What if there were government incentives/grants to develop the pharms?
> 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.
development with the caveat that any compounds developed would be
jointly owned by the drug company and the government, or if the drug
company backed out from that drug, they'd have to transfer the rights
entirely to the government.
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