Posted on 08/14/2019 9:01:56 AM PDT by Attention Surplus Disorder
Well, if we didn’t have jerks like Pharma Bro Raise Prices 4000% Shkreli in charge of these businesses, we wouldn’t be over a barrel.
It already seems to have done that in one instance (Ebola Reston).
p
That’s over and done.
Unfortunately, it costs a lot of money, and time, to bring a drug to market.
Everyone involved, from the support staff, to the scientists, to the medical consultants wants to earn a nice paycheck, especially those with advanced degree's.
If an auto worker can get $30/hour to install a windshield in a car, then an MD/PhD pharmaceutical scientist working on a molecular biology based cure for a scourge like ebola should be able to earn at least that, if not double or triple. It's just how the world works.
The estimated average cost to bring 1 drug to market is between $648,000,000 and $2,700,000,000. [1] [2][3]
The estimated average time ( from initial discovery to the marketplace and all the phases in between) to bring a drug to market is 10 years. [1][2][3]
Then, there is the very high percentage of failures in the process. Only an estimated 1 of every 10 drugs investigated make it to market. A 90% "failure" rate. That's lots of time and money spent on something they can never make money on. [1][2][3]
Cost is always going to be an issue with those kinds of numbers involved.
I'd rather have a chance of a cure at $170,000 price tag, than no chance of a cure because there was no drug company willing or able to create one.
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.
This is wonderful. May it be successful.
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. ;)
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