Your post responded to me because my post was a response to another FReeper.
I am not a huge complainer about drug development costs (My Dad worked for Hoffman LaRoche for 42 years as a pharma chemist)
You’re quite right; the development costs of successful drugs are huge and only 10% (or some other small pctage) get through the gamut. Additionally, not all the successes are the so-called blockbusters; sometimes their effectiveness is supplanted by some other company’s offering; and successful or not, there’s always an army of attorneys ready to sue the crap out of any drug co if people start dying after using it. And an additional wrinkle is the propensity of the giant drug cos to buy little companies with the idea of acquiring what they view as a promising drug.
Merck spent a decade as a $35 stock after being an $80-90 stock for 20 years from the Vioxx debacle. Bristol spent a decade down in the 30’s (down from the 60’s) after buying Imclone. A pal of mine who works for Gilead in pharma sales says they bought a little co for $14 bn and their drug turned into a total bust. Total writeoff. And even Buffett bought TEVA in the 20’s, I think. Now $6.
It’s an incredibly high-stakes game, for sure.
Usually when I reply to someone within a thread, I'll include the person they where replying to...typically cause I'm in agreement to one degree or anther with that original person. In this case, you. ;)