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Chief Jack's Galley

There's a place for people who laugh at nothing...

December 6th, 2007

(no subject) @ 02:04 pm

Current Location: 30062
Current Music: "Bad Kat Karma", Steve Raybine

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Date:December 7th, 2007 06:05 pm (UTC)
That prescription drug prices are a response to the business realities of the pharmaceutical business. It's not a bunch of evil fatcats looking to get wealthy off of sick people; it's businesspeople recognizing that they have to support the research chemists that work hard to develop the drugs that make our lives better. Much of that work that research chemists do is complying with and kowtowing to the regulations of the bureaucrats at the FDA, which, like Social Security and the National Labor Relations Act, is a relic of the New Deal. Much pain and suffering could be avoided by streamlining the drug approval process or eliminating it entirely, replacing it with private organizations like Underwriters Laboratories, who do a better job (look at the number of recalls there have been of drugs that had been approved by the FDA! And remember, high-priced shysters don't drag the government into court when that happens). A shorter time to market would be less costly, and the savings would flow to the consumer.

Also, remember that the government collects millions in direct and indirect taxes from the pharma companies. These are costs that are passed along to the consumer. So are the hefty dividends that are paid to shareholders, many of whom are retirement funds, many more are senior citizens. These are two groups that rely on those dividends to live. Ironic that the group that complains the most about drug company profits is also the one group that benefits the most from them.

Third, those high profits are intended to tide the company over during times when they don't have a new product to sell. That way, they don't have to lay people off, creating another problem.

These are realities that people don't consider when they complain about the price of prescription meds. And, believe me, I spend enough on them, too, even for generics and even with drug coverage. (And think abut it: If all you pay for a prescription drug is $25, who cares how much they charge, right?) Getting the government off their backs and out of their pockets, and letting them go back to their real business instead of being bean counters and paper pushers for Congress, would enliven the industry. Orphan drugs would be adopted, and companies could focus on developing drugs rather than on making money.

Chief Jack's Galley

There's a place for people who laugh at nothing...