When the reader sees headlines like the one above they should beware.
Questions to be asked?
Who funded the research?
Is it an organization that abhors profit?
Does it consider that major U.S. Pharmaceutical companies sell their products to poor countries for dimes on the dollar? (Source)
Did it factor in the cost of malpractice insurance paid by the manufacturer, in the most litigious country in the world? (Source)
Did the study factor in the cost to the health care system of an unmet medical need had the pharmaceutical not been available?
Of course not. Caveat emptor!
It became clear to me after putting this article together and sourcing it that Market Watch has a vested interested in ripping the Pharmaceutical Industry.
They can sell positions in the companies as they like.
U.S. drug prices, which are notoriously higher than in other countries, generate “substantially” more revenue for companies than their research and development costs, according to a new report published in the journal Health Affairs. (Source)
To the contrary, the findings were not reported in a peer review journal but a blog.(Source)
In 2015, higher U.S. prices generated $116 billion in revenue compared with the $76 billion spent on research and development worldwide.
“This finding counters the claim that the higher prices paid by U.S. patients and taxpayers are necessary to fund research and development,” the Memorial Sloan Kettering Cancer Center researchers wrote. “Rather, there are billions of dollars left over even after worldwide research budgets are covered.”
Pharmaceutical manufacturers often defend the high, and growing, cost of their medications by pointing to the high risk involved in drug development.
They are deceitfully referring to the price gouging of the EpiPen. (Source)
A study by the Tufts Center for the Study of Drug Development, which is funded in part by industry, found that research and development costs on average $2.9 billion per new drug — a figure frequently invoked by drugmakers.
The report, published Tuesday, could be an important counterweight to those industry figures.
President Donald Trump has criticized drug prices several times, saying on Tuesday that he was working on a new system to increase industry competition, but it’s unclear what his approach would be.
” Investors have stopped believing Trump’s drug price threats” (Source)
See the entire article below.
House Republicans unveiled their health-care plan to replace the Affordable Care Act on Monday night. WSJ’s Gerald F. Seib explores some of the key criticisms coming from conservatives and liberals on issues raised by the new proposal. Photo: AP
The analysis focused on the 20 top-selling U.S. drugs, which are sold by 15 companies, including AbbVie Inc. PFE, -0.12% Amgen Inc. AMGN, +0.47% AstraZeneca PLC AZN, -0.19% Biogen Inc. BIIB, +0.39% Bristol-Myers Squibb Co. BMY, +1.45% Gilead Sciences Inc. GILD, +0.81% Johnson & Johnson JNJ, +0.21% Merck & Co. Inc. MRK, -0.04% and Pfizer Inc. PFE, -0.12%
The researchers compared the U.S. prices of those drugs, including an estimated level of discounts and rebates that drug companies provide, to prices in Canada, Denmark, Ireland and the United Kingdom.