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> LaMattina counters that pricing should be based not on R&D costs but on the value a drug delivers to patients. I love this line. We should do it for oxygen.
by artsrc 12y ago
> LaMattina counters that pricing should be based not on R&D costs but on the value a drug delivers to patients.
I love this line. We should do it for oxygen. Your bill is pretty high because oxygen delivers a lot of value.
Pricing should be based on cost of provision. Because if it is higher in a market economy someone else can enter the market and provide at a lower cost.
- Houshalter 12y agoThe economics of drugs are different. The probability of two different labs inventing the exact same drug are pretty small. But when they do invent a drug they have a limited monopoly to make their money back. Which is a good thing, since it encourages more investment in drug development then there otherwise would be.