4 ms·
I've got a question about price caps, would appreciate a non-trolly/non-sarcastic answer if anyone is informed on the topic. We know that epi-pens cost under $
by Eric_WVGG 10y ago
I've got a question about price caps, would appreciate a non-trolly/non-sarcastic answer if anyone is informed on the topic.
We know that epi-pens cost under $50 to make, because they're sold profitably in Canada for around $60.
And I recognize that companies are entitled to make a profit, and that drug companies (sometimes) use those profits on R&D for new and better products.
But we see instances of clear cash grabs. Sometimes they're due to circumstances (in this case, a generic alternative failed FDA approval, and a competitor left the market); other times a drug company will buy up competitors and consolidate the market (Turing Pharm).
Why don't we have some sort of market cap of 3-4x or even 10x the cost of manufacturing a drug that is implemented after the R&D has been paid off? I get that companies would bend over backward to inflate that R&D figure, but sooner or later they would have to admit that it was paid for and need to settle into a mode of merely making reasonable profits instead of insane profits.