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Because of a free market. And limited rules against making profit. A CEO of a new drug company can legally set his salary at $10MM and have it be a part of the
by joering2 10y ago
Because of a free market. And limited rules against making profit.
A CEO of a new drug company can legally set his salary at $10MM and have it be a part of the cost of running his business, hence selling drugs for $10MM+.
- ekianjo 10y agoTo be fair the Pharma market is so regulated calling it Free Market is a seriously good joke.
- fivesigma 10y agoIf the market were free drugs would be commoditized, like aspirin. The reality is: * As a pharma company you can't compete because another player is holding the patent for decades * Governments around the world will indirectly spend trillions by way of social insurance on your products, so prices will balloon because that money has to go somewhere * The barrier to entry is so high thanks to regulation This is a made-up situation of artificially low supply coupled by propped up demand. How is this a free market exactly?