Why are drugs cheaper in Canada (and elsewhere)?

My Brain

[maui_hawaii]

This is a rough outline I wrote while watching the debates.

It hasn't been revised in any way and was fired off in about 30 minutes. Please try to overlook any grammar or other errors.

[maui_hawaii]

ping

Comments?

[nmh]

Canada subsidizes drugs for the sheeple hence prices are lower. In the U.S. the government does not so drug companies set the price they want.

[maui_hawaii]

ping

[A. Pole]

Comments?

A lot of research is financed by public grants. Also a large part of price is caused by the expensive legal requirments.

It is strange that the same people who feel sorry for the companies which could suffer losses if prices are not controlled, do not feel sorry for people who invested years of their life and tens of thousands of their in education money to see their jobs sent abroad.

Free market should work both ways.

[reed_inthe_wind]

Throw in a few comments about the need to keep American jobs.

[CamelRiding4U]

Probably the threat of lawsuits drives the price up in the States too.

[maui_hawaii]

Do your best to shoot 'er down folks.

Don't be shy.

Give honest opinions about the question I raised.

This is designed to start a discussion about WHY things are like they are.

If any of you can show my theory to be wrong its appreciated.

With election season rolling around this might be on the ballot.

Its good to have a discussion about it.

[DMCA]

Quite a lot of the research that the drug companies use was done using public universities and grants so to say we do not subsidize them is not entirely accurate.

[maui_hawaii]

Why don't you make a relevant comment. That would be the first step.

[Reeses]

Don't forget to factor in the cost of American trial lawyers. There is no legal lotto system in Canada or Mexico therefore the cost to provide heathcare services and products is much less.

Drugs would be much cheaper if drug companies didn't have to pay huge liability insurance premiums, in other words trial lawyer payments.

[maui_hawaii]

I imagine thats part of the cost too. For sure. Complying is probably a big cost.

[DMCA]

Drug companies also have to recoup the expense of advertising in the USA. Not all countries allow drug companies to advertise like they can in America.

[nuconvert]

Good points. How about lawsuits against drug companies here in U.S.? That increases the price.

[CamelRiding4U]

You raised some good points. Thanks!

I particularly enjoyed this part...

source: My Brain

Classic!

[maui_hawaii]

Thats the right idea...Seriously. Ask the right questions. This thread is supposed to start a REAL debate.

We offer some grants and all that, but largely the industry is NOT grant funded. Thats my opinion.

[TidalBore]

You are partially right ... but you forgot that hidden element called "Corporate Welfare". That is what angers American citizens... Why should taxpayers have to pay on both ends? Companies are subsidized to keep costs down, or so we are told. But those companies that take your tax dollars to develop those medications have to make a profit before the patent runs out and they stick it to you every time.

[maui_hawaii]

In ways they have it worse in other markets.

If the US companies refuse to supply their markets everyone does what China threatened to do: Go buy a few bottles in the US, reverse engineer and manufacture the drugs on their own. Then the drug companies get NOTHING and all patents are disregarded. In other words the drug companies are trapped in the system.

[brydic1]

The solution is to refuse to sell to any countries unwilling to pay the same prices charged in the US market. If they steal the formulas, then slap a total trade embargo on them both ways. Ship them nothing and buy nothing from the thieves, and for good measure bar their people from coming here as illegal or legal aliens.

[maui_hawaii]

Advertising...I don't know.

I still think if it costs $1billion to develop and only 1,000,000 people will use that product over the next 5 years that still equates to a 1,000 bucks a head, just for overhead.