3 ms·
Well one factor is drug companies' outsized margins: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7054843/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7054843/
by tech_ken 3y ago
Well one factor is drug companies' outsized margins: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7054843/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7054843/
- missedthecue 3y agoSo the median pharma industry profit margin is 13.8%. Forget lowering it to fortune 500 average... take it zero. How much lower do drug costs get? Not much. This pill is still going to cost many thousands of dollars.
- tech_ken 3y agoAny solution will require targeting multiple sources of cost. As you point out elsewhere, R&D is a big cost driver, but profit seems comparable [1]. Moreover one does have to wonder about the various sources of that R&D cost, I'm not an expert but it would seem to me that issues like "evergreening" would inflate development costs unnecessarily. [1] https://healthpolicy.usc.edu/evidence-base/how-did-the-public-u-s-drugmakers-sales-expenses-and-profits-change-over-time https://healthpolicy.usc.edu/evidence-base/how-did-the-publi...