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In the context of this discussion, ‘Europe’ doesn’t do ‘R&D’. Biotech/Pharma are international. Irrespective of the home location of the organisation, virtuall
by mft_ 5y ago
In the context of this discussion, ‘Europe’ doesn’t do ‘R&D’.
Biotech/Pharma are international. Irrespective of the home location of the organisation, virtually every drug trial from phase I onwards will be run in multiple countries. Further, virtually every drug found to work and filed with regulators for a license, will be filed internationally: Europe (EMA), US (FDA), and a whole host of smaller independent country regulators: Japan, Australia, Switzerland, etc.
So within the overall business model of a given company, there’s no link between the countries in which research is performed, and the prices ultimately set in those countries.
Drugs are more expensive in the US simply because there aren’t any pricing controls (beyond maybe some bargaining by providers; I can only assume this is because of the power of lobbying over the political process in the US). Drugs are cheaper where there’s an established process for determining or controlling prices.
- roenxi 5y ago> Drugs are more expensive in the US simply because there aren’t any pricing controls... There aren't any other markets where "pricing controls" are needed. Drugs are more expensive in the US simply because it is illegal for a 3rd party to sell them. If it were legal, anyone could buy the drugs where they are cheapest and ship them to America. The problem is obviously that competition is banned. If that isn't the problem, the entire population of the world is remarkably indifferent to a really easy opportunity to make lots of money. And, I suppose almost to obviously to add, if competition is illegal then prices go up.
- mft_ 5y agoI’m not an expert on the import/export side. When I used the term ‘pricing control’, I was referring to the systems that some countries (eg UK, Germany) have in place for determining the price they’ll pay for a drug based on (roughly) the value it brings to patients. (The best known of these is probably NICE in the UK; it’s not a perfect system, but it’s a pretty good attempt.) Other countries in turn ‘reference’ their price from a number of similar countries including those with formal processes. Broadly, this is why drug prices are controlled and lower in Europe vs. the US. In the US, even where there are competing drugs in the same disease, there’s no pressure on prices - manufacturers can just keep on racking up their prices almost without a concern.
- roenxi 5y agoWell, ok. But the reason it costs more in the US is because it is illegal to go to Germany, buy drugs, ship them to the US & sell them. If that was legal, someone would do it and make bank. And it is the US that is responsible for those laws.
- herbst 5y agoI doubt that is legal anywhere tho. I for sure can't legally sell meds I imported from somewhere else.
- long_time_gone 5y ago==There aren't any other markets where "pricing controls" are needed.== The minimum wage rate is a price control.
- deleted 5y ago[deleted]
- acdha 5y ago> In the context of this discussion, ‘Europe’ doesn’t do ‘R&D’. Ever wonder why it’s the Pfizer-BioNTech vaccine? It’s because the simple nationalist narrative you’re repeating is misrepresenting a far more complicated international research story. https://en.wikipedia.org/wiki/BioNTech https://en.wikipedia.org/wiki/BioNTech