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Yes, but that is capitalism. These companies primarily get created because investors want to see a return, the side effect is that they produce novel drugs. S
by chris_va 10y ago
Yes, but that is capitalism.
These companies primarily get created because investors want to see a return, the side effect is that they produce novel drugs.
So, no, they probably don't need to raise prices. Because they now have a temporary monopoly they are finding the monopoly price point as you say.
Having said that, try coming up with a better system to produce drugs.
- pyre 10y agoThat is not capitalism. The existence of the FDA ensures that it is not a free market. Trying to label it as such is disingenuous. The EpiPen product is basically a plastic housing around a syringe to make it easily injectable. There is no high sky-high R&D cost here.
- chris_va 10y agoWell that was impassioned :). An unregulated free market is not the same thing as capitalism. There is nothing preventing you or anyone from developing a generic epipen, especially since it is just a plastic housing around a syringe. It just takes time and money. Also, R&D costs are already paid for. If they are using money for R& D it will be for something else. Profitability in the pharma industry is generally low, there are lots of failed drugs that have to be paid for by something. Arguing that companies have a moral responsibility to price products low is unfortunately not true.