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Offsetting R&D costs and directing R&D are a policy problem, and a completely different beast. The antibiotic resistance crisis is in front of us, yet the big r

Offsetting R&D costs and directing R&D are a policy problem, and a completely different beast. The antibiotic resistance crisis is in front of us, yet the big returns are in cancer, with the additional wrinkle being that what is needed is new antibiotics of last resort. That's a problem of a kind that the market cannot solve. Also: generic shortages. Generics are a low-margin business with maybe 6 suppliers workdwide. If one facility goes off-line for this or that reason there's going to be a shortage, and slack capacity is punished by the market. Right now the cisplatin shortage is in the news, and again the market is no help.

nonfamous 3y ago
Generics may be a low-margin business for manufacturers, but they are emphatically not so for retailers. The likes of CVS make a lot of profit from generics, which makes it surprising that this hasn’t spurred pressure from on the manufacturers to amp up supply.
- HarryHirsch 3y ago
  It's a constrained market - people aren't going to buy more cisplatin or cephalosporin just because it's cheaper. (Yes, people do shop around for a butt enlargement or Lasik but these things are strictly optional and can wait until the next month, however when you need a prescription drug you really need it.)