2 ms·
My dad has worked on pacemakers, defibrillators, left ventricular assist pumps, all kinds of implantables. In this industry they regularly mark up their manufa
by msandford 12y ago
My dad has worked on pacemakers, defibrillators, left ventricular assist pumps, all kinds of implantables. In this industry they regularly mark up their manufacturing costs 10x-20x because it takes minimum 5-10 years to get something through the FDA. Even if your design is 100% perfect the first time (which they never are).
So a $5mm R&D project turns into a $50mm slog through approval and then you get to sell, what a few tends of thousands of units? Let's just say that you could somehow magically sell 50k units. That means you've got to charge $10k per unit just to cover the engineering & approval and stuff and that's before a DIME of profit. So a pacemaker costs $20k not because it's got $15k of raw materials inside of it but because the FDA says that it has to get approved and approval isn't cheap.
I'm sure drugs are the same way. It might cost only a few dollars to actually manufacture the ingredients in a pill but the R&D necessary to know WHAT ingredients might have cost $100mm. So even if you sell a million of them they've got to cost $100 each before you take anything else into account.
I am not suggesting that it would be OK for the government to basically just take the patents. But it also wouldn't surprise me if they did.