[TomGuy]

They have only a few years to sell it at full price before it goes generic.

BS. They modify the formula slightly and re-issue under a new patent and a new name, thus extending the time before it can go generic.

About half the drugs on the market are actually researched, developed, and produced overseas. Prilosec, for example, a big seller for acid reflux, is a product of Sweden. India, Japan, Israel, and Germany are MAJOR drug producers. These articles that imply that the US carries all of the burden for research, development and production are disingenuous.

[Mr. Bird]

BS. They modify the formula slightly and re-issue under a new patent and a new name, thus extending the time before it can go generic.

You're sort of right; no one is stopping another company from producing the original. Right now, people are buying prescription drugs that are no more effective than their OTC precursors; but consumers and doc's don't take the time to look past the marketing.

If Tide was cleaning your clothes just fine for years, why would you spend extra on "new and improved" Tide?

[Proud_texan]

I'd have to disagree or at least as far as I know other than GlaxoSmithKline, AstraZeneca, Novartis, Roche and Aventis they're all generic drug companies. I also recall that all (or most) of the above moved their R&D to the US because there's no price control here.

But here's the question. Is there anyone here who, if they could sell their product in country y for $10 and in country x for $1, both at a profit, wouldn't do it?

I will speculate on one reason why drugs here are so high; there's no free market. I suspect that a large percentage of all American's get all or part of their prescriptions paid for by insurance that's paid for by their employer. Thus they have no concept of what any aspect of medical care costs.

Like withholding tax, if they had to write out a check for the full amount, there would be a free market revolt.