4 ms·
> is there a simple explanation for why it's easier to allow importation from Canada than to lower domestic prices in the US? There is no simple answer to your
by nordsieck 7y ago
> is there a simple explanation for why it's easier to allow importation from Canada than to lower domestic prices in the US?
There is no simple answer to your question.
Here are a few issues:
1. It is fundamentally difficult to price a good with a high fixed cost and a low variable cost. International pricing is even more difficult.
2. Different countries have different regulations around the manufacture and sale of drugs, which can add to the cost to manufacture and distribute in those countries.
3. Many countries with socialized medicine use their monopsony position to negotiate good/better prices for drugs. Sometimes this involves credible threats to ignore patents.
4. Fake drugs are a thing and are a real, serious problem. My understanding is that drugs that pass through Canada (and possibly other places) do no go through the same verification processes that drugs for internal consumption do.
- tareqak 7y agoFor 4., I’m pretty sure Canada has a similar verification process. It’s whether or not the U.S. considers that process to be the same with in terms of standards, or a threat to whatever vested interests the U.S. verification process protects. The latter point might sound like anti-American rhetoric, but the same thing happens within the U.S. . Consider the bidding process for the U.S. military project involving Amazon, Oracle, and IBM and the latter two companies accused the process of being heavily skewed to favouring Amazon [0]. [0] https://www.businessinsider.com/heres-why-amazon-is-heavily-favored-to-win-the-10-billion-jedi-contract-2018-10 https://www.businessinsider.com/heres-why-amazon-is-heavily-...