Nov 17, 2009
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My biggest gripes with them is that:
1. They spend more on marketing than development, but they act as if they spend a lot on development. I realize that to develop a drug is typically $100B. I've seen the numbers myself, and I believe this.
2. A pharma-salesperson is NOT a biotech major in college or a bio major or even a chemistry major. The uber-photogenic pharma salesperson is a super good looking marketing or business major from a nice sorority. They get paid to seduce MDs, if you think about it.
3. Pharma companies are very profitable! The average profitability of an S&P 500 company in aggregate is 7%, and for the pharma companies (and there are more than 500 globally that are publicly traded), the profitability is 11.4%. However, I've aggregated all the micro and distressed companies. If we look at the big pharma companies, their profitability is very high - 20%.
4. They'll create a drug that solves a problem, but it is VERY EXPENSIVE. Canada has rules against this.



In trying to figure out how the drug companies are complicit in rising healthcare costs. What do you think should be done to the drug companies, and what can we learn from other countries?
 

MOHS_01

audemus jura nostra defendere
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Someone has been smoking a little too much authoritarian wacky weed.... For someone who fancies himself an "armchair economist", you sure have some bizarre notions of and rule of law and how markets work.

Then again, perhaps you can apply for the job of "half-baked economic czar".:thumbdown:
 

loveoforganic

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" I realize that to develop a drug is typically $100B. I've seen the numbers myself, and I believe this."

Where do you get these numbers? lol
 
OP
Z
Nov 17, 2009
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" I realize that to develop a drug is typically $100B. I've seen the numbers myself, and I believe this."

Where do you get these numbers? lol

It was supposed to be "$100M of dollars".


"http://en.wikipedia.org/wiki/Drug_development


Studies published in 2003 report an average pre-tax cost of approximately $800 million to bring a new drug (i.e. a drug with a new chemical entity) to market.[2][3] A study published in 2006 estimates that costs vary from around $500 million to $2 billion depending on the therapy or the developing firm.[4] These figures relate only to new, innovative drugs associated with an NCE. Each year, worldwide, only about 26 such drugs enter the market (2009: 26, 2008: 25, 2007: 18, 2006: 22, 2005: 26, 2004: 24, 2003: 26, 2002: 28, 2001: 23, 2000: 26, 1999: 33[citation needed]). The development cost generic drugs are significantly smaller."
 

loveoforganic

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The number wiki gives, that you cited, is 800 million, not 100 million. Not that it matters... Just still trying to figure out where these numbers are coming from.