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The only argument I can see a company going towards is opportunity cost, where they could be using facilities to create more profit, however that simply continu
by loceng 9y ago
The only argument I can see a company going towards is opportunity cost, where they could be using facilities to create more profit, however that simply continues to highlight a problem with how we allow things to be structured, a failure of or complete lack of necessary safeguards.
- Consultant32452 9y agoWhen you write "more profit" I read "helps even more people."
- monocasa 9y agoThat's a big leap. The entire point of buying orphan drug companies like this is the rent seeking.
- Consultant32452 9y agoThe orphan drug company sold for a reason. It's a false assumption to assume the product would've continued to be available at the same price indefinitely.
- loceng 9y agoWhich is what I am talking about regarding a lack of a fail-safe, whereby public intervention could takeover and maintain production - so either companies can be honest with their costs and take a reasonable profit, or things move to the fail-safe; what would trigger that mechanism would have to be figured out/decided.
- Consultant32452 9y agoFor out of patent drugs, nothing is stopping you from funding such a fail-safe. The problem is you'll run into the question of is this the most social benefit for your dollar spend. I suspect not, but that's for you to decide.
- loceng 9y agoPerhaps sold because the parent company wouldn't want to be associated with immoral activity like price gouging, however could sell at a higher amount to someone willing to start gouging; who initiates these transactions would also be interesting to look at.
- Consultant32452 9y agoNone of that matters for out of patent drugs. If there's a massive profit to be made here, make it.
- morogop 9y agome, an idiot: "This company that is not investing in R&D is probably not creating drugs." you, a genius: "This company that is not investing in R&D is magically creating miracle drugs through the power of Ayn Rand"
- chrisbennet 9y agoA similar company, Valeant bought drug companies, raised prices and slashed R&D. Bid for Allergan Puts Valeant's Research and Development Cuts Under Scrutiny $53 Billion Bid Puts Focus on Strategy of Shedding Research Operations and Making Money Selling Products https://www.wsj.com/articles/bid-for-allergan-puts-valeants-research-and-development-cuts-under-scrutiny-1402443053 https://www.wsj.com/articles/bid-for-allergan-puts-valeants-...