4 ms·
It’s perhaps analogous to how list prices for college tuition aren’t necessarily reflective of what people actually pay. It’s a complex system and the price in
by notlob 9y ago
It’s perhaps analogous to how list prices for college tuition aren’t necessarily reflective of what people actually pay.
It’s a complex system and the price increases are used in part to negotiate with the intermediaries like PBMs.
Biologics are a special case also due to complexities in how they (and biosimilars) are regulated, manufactured, and exclusivity periods they are granted. They certainly are not a few cents a dose to make.
Not a satisfying answer, and apologies for that, but it’s difficult to traverse with anything approaching brevity.
- walshemj 9y agoNot the same professors salary and other costs rise with inflation a drug once developed and a production line is in place does not face the same cost increase
- notlob 9y agoDrug company employee salaries and overhead also keep pace with inflation, better than academic salaries. I don’t understand your point. A biologic production line requires extensive upkeep: it is a living product. Costs all around are higher. There are also Phase IV activities to consider. Bottom line, all else being equal, biologics cost more than small-molecule drugs to make and distribute.