Canada - Healthcare "Parasite"
- Thread starter Toro
- Start date
The OP states plainly that the companies turn a profit in Canada. Canada contributes to drug research despite its 'price caps'. So, what I take away from it, given what I know about stock performance for pharmaceuticals, is that the American people are funding a wider profit margin, and nothing more.
What the OP says is that pharma companies turn a variable profit in Canada. That does not include the cost of R&D.
Or at least that is what the OP claims.
Or at least that is what the OP claims.
Considering Canada has pharmaceutical companies of its own, which face the same price restrictions, yet do R&D, I find it odd to say that Americans have to make up the difference. Again... they have to pad the profit margin from what I see.
Do you know how much money it takes to get a drug from nothing to market? There are many companies in Canada that just make generic drugs, these companies have no research or development costs.
A medication may take 5 to 10 years to see the pharmacy shelves, if the drug is one of the successful ones. “For the higher risk, there has to be a potential for higher reward,” says Daniel Rodriguez, a professor of organization and management at Goizueta. “But there is always the possibility that there may be a higher loss paid for it. This is the nature of this type of business.” In fact, in expensive human clinical testing, there is a high failure rate. According to the industry mouthpiece and trade group, Pharmaceutical Research and Manufacturers of America (PhRMA), for every 5 potential new medications in human testing, only one will eventually be approved for the pharmacy shelves.
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A medication may take 5 to 10 years to see the pharmacy shelves, if the drug is one of the successful ones. “For the higher risk, there has to be a potential for higher reward,” says Daniel Rodriguez, a professor of organization and management at Goizueta. “But there is always the possibility that there may be a higher loss paid for it. This is the nature of this type of business.” In fact, in expensive human clinical testing, there is a high failure rate. According to the industry mouthpiece and trade group, Pharmaceutical Research and Manufacturers of America (PhRMA), for every 5 potential new medications in human testing, only one will eventually be approved for the pharmacy shelves.
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If we expect them to make successful drugs, then we have to pay for failures also. It is to costly for most small companies to afford the research and development. This of how many failed experiments there are before success.
ironsides, I know people who take part in drug trials here, IN CANADA. Not generic drug marketing, actual drug research. It takes place here, which would indicate there's a fine profit margin for it, even if it's not the massive one the New York Stock Exchange likes.
Hogwash. Why should I pay for their failures? Unless you want to abandon the free market charade and socialize pharmaceutical production.
well, I guess with tighter margins in Canada, that means the Americans ARE funding something we don't....
By DEVLIN BARRETT, Associated Press Writer Devlin Barrett, Associated Press Writer – Wed Sep 2, 7:09 pm ET
WASHINGTON – Federal prosecutors hit Pfizer Inc. with a record-breaking $2.3 billion in fines Wednesday and called the world's largest drugmaker a repeating corporate cheat for illegal drug promotions that plied doctors with free golf, massages, and resort junkets.
Announcing the penalty as a warning to all drug manufacturers, Justice Department officials said the overall settlement is the largest ever paid by a drug company for alleged violations of federal drug rules, and the $1.2 billion criminal fine is the largest ever in any U.S. criminal case. The total includes $1 billion in civil penalties and a $100 million criminal forfeiture.
Authorities called Pfizer a repeat offender, noting it is the company's fourth such settlement of government charges in the last decade. The allegations surround the marketing of 13 different drugs, including big sellers such as Viagra, Zoloft, and Lipitor.
more...
http://news.yahoo.com/s/ap/20090902/...zer_settlement
By DEVLIN BARRETT, Associated Press Writer Devlin Barrett, Associated Press Writer – Wed Sep 2, 7:09 pm ET
WASHINGTON – Federal prosecutors hit Pfizer Inc. with a record-breaking $2.3 billion in fines Wednesday and called the world's largest drugmaker a repeating corporate cheat for illegal drug promotions that plied doctors with free golf, massages, and resort junkets.
Announcing the penalty as a warning to all drug manufacturers, Justice Department officials said the overall settlement is the largest ever paid by a drug company for alleged violations of federal drug rules, and the $1.2 billion criminal fine is the largest ever in any U.S. criminal case. The total includes $1 billion in civil penalties and a $100 million criminal forfeiture.
Authorities called Pfizer a repeat offender, noting it is the company's fourth such settlement of government charges in the last decade. The allegations surround the marketing of 13 different drugs, including big sellers such as Viagra, Zoloft, and Lipitor.
more...
http://news.yahoo.com/s/ap/20090902/...zer_settlement
Hey, I just created a drug that cures everything, never tested it. Do you want it, cost you $5.00 now, $100 after I see if it is safe. Never mind hogwash, if you want or need something that someone else made, pay for it. It is a free market, and as such can charge what ever the market will pay.
No question about it the major drug companies keep prices high on drugs as long as they can which I think is 5-6 years before it can go generic. You gave a classic example when you mentioned Pfizer, they are fined but so what they can afford it. If we tighten the regulations drug companies will lose the incentive to create drugs the world may need in the future. Socialized medicine could keep prices down artificially, but I would not want to rely on that in a epidemic.
Not free in the sense that they give it away. As long as there is no goverment control it is a free market.
There is government control. A true free market would not include patent rights, so that 5 or 6 years of high prices you pointed out, would be cut down to 5 or 6 weeks, before someone reverse engineered a generic. The gov needs to either remove the protections from the companies, or add some extra for the consumers.
Fourth offense? I wonder whatever happened to the 3 strikes & you're out thing. Or does that only apply to the guy who steals 3 loaves of bread or sells 3 bags of pot?
Dead right. That term is only politicospeech. When a handful of companies and a batch of speculators control prices, there is no such thing as free market.
There is government control. Plus, you already mentioned the barriers for smaller firms. Also, there are externalities which affect competition.
If you purchase Zantac for an intestinal issue, and the company marketing said drug is including the price of a failed drug in that transaction, then that amounts to subsidizing. Not free market.
