I don’t think its tolerable in the least, nor sustainable. It is simply a statement of fact.

Drug prices in the US are based on a set of variables:

  • What was the cost of R&D?
  • How long do i have under patent law to recover my investment and turn a profit before the generics are allowed to manufacture it?
  • How much of a loss do I have to make up in the US because other nations won’t pay enough?
  • Are there any special costs of manufacture?
  • How many potential customers for the drug are there
  • How many drugs did I have to abandon during the testing process that I have to cover my losses on?

My view has long been that part of the solution here is simply to allow the manufacturer longer patent protection. The “clock” on that patent starts when it is filed, and it is filed the moment the pharma decides to move forward with testing. They have 15 years, I believe, of protection. It takes on average 12 years to get the drug to market, if it makes it it all. So, they have only three years to make up millions of dollars in investment.

It’s a big problem. Very difficult. Seems to me the easiest way is to give them a bit more time to spread out those costs, instead of having to cram them all into three years.

But, nobody ever talks about that, for some reason. But it tells you why they want to streamline time to market.

Written by

Data Driven Econophile. Muslim, USA born. Been “woke” 2x: 1st, when I realized the world isn’t fair; 2nd, when I realized the “woke” people are full of shit.

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