Originally posted by KrazyJethro
Perhaps it would hurt or force Lilly, and others, to spread around the R&D and advertising costs.
An interesting and novel idea.............. (With tongue in cheek! Not personally directed at you or your idea. But directed at the Drug Industry)
To do so – as you suggest - would be a normal and appropriate cost accounting method.
The Drug companies choose not to do so.
They argue: Other Countries enforce ‘draconian’ price controls on the sale and distribution of their products; yet other countries do not have the
economic means to purchase the drugs;
Therefore the Drug companies lower their prices to make the drugs available to those of less economic means;
Because of these factors they are forced to charge much higher prices in the USA, a result of those nasty price controlling nations and because of
their “social conscience” to make these drugs available to those less fortunate.
Further more, they have very high R&D costs. To reduce prices in the USA would threaten the economic support needed for the R&D thus endangering our
future advances in the bringing to market new ‘wonder’ drugs.
Sounds all well and good. Almost plausible, until you examine the facts.
1. In spite of the price controls and their ‘social conscience’ they sell their product at a profit in all countries throughout the world. The only
difference being the per cent profit from each market area.
2. Must of the R&D costs are underwritten by the USA government, and other governments thru out right research
3. This fact is kept off their books by use of legally formed fronts or shell organizations; partnerships with universities etc. and accepted
accounting methods – all designed to blur this fact. (An example is www.dddresearchgrant.com...
):Upon discovery of these new wonder drugs nothing
accrues back to the government who bore the expense of the discovery – it’s our tax dollars at work. (An interesting side bar is the efforts of the
Bush Administration to attempt to inject ideology into science. (www.biomedcentral.com...
4. In the last 20+ years the drug industry has redirected its efforts away from the discovery on new classes of wonder drugs; dropped the production
of and research in disease areas because the market size will not allow for their desired level of profit. This area is referred to as the Orphan
drugs area. And so not to loss the benefit of these important drugs, the government now subsidizes the industry to continue producing these important
and life saving drugs and continued research in this important area for the few so afflicted with these rare afflictions.(
5. Further more the industry has undertaken and has directed its efforts to extend the patent life of existing drugs and/or reformulation of an
existing drug and reapply for a new patent for basically the same drug addressing the same disease.(
6. The Drug industry has added a new weapon in defense of profit to its arsenals – Lobbying of Congress.
) ; (www.hillnews.com...
) The Pharmaceutical
Research and Manufacturers of America, known as PhRMA, will spend at least $150 million in 2004, according to confidential budget documents. This is a
23 percent increase over this year's budget of $121.7 million and is but ONE drug lobbing group in Washington.
I would suggest that there are some areas of government’s constitutional responsibility like, to “protect the health, safety and promotion of the
common good” of its citizens which should be above political debate; issues that are so important that distinctions between Republican and Democrat;
conservative and liberal; should be put aside and decisions and priorities determined by what is the best for all the people. This is, I would
suggest, one of those areas.
The recently passed legislation to provide drugs for seniors is a good example where the powerful drugs lobby; the bickering of party, philosophical
and politics put the interests of the citizens LAST.
The law produced by Congress promotes profit at the expense of competition and creativity. And is an example of the sell-out of the American people
by its political leaders who have prostituted themselves for a few bucks to be used to potect their jobs and maintain their grasp on power.