In many cases, compete with their own products; its a simple fact that a large difference in consumer prices enables arbitrage.
Manufacturers know the laws and the deal in Canada, and voluntarily choose to sell their products there. Do you think an elderly person cares about drug R&D that will occur after his lifetime? Frankly I myself would be quite happy to let the Canadian taxpayer fund my purchases.
Drug companies rightfully enjoy monopoly patent status on their products for a given time. If they want to attract these customers, they might want to consider lowering their domestic prices.
Foreign market restrictions should hardly be "competed" against with our own, especially one that serves an industry over the people. Drug companies are responsible for their own R&D to ensure their future profits; they don't need our government handing it to them on a silver plate.
Since drug companies are overwhelmingly publicly-traded companies, they cannot sell their product at a loss and maintain their fiduciary responsibility. The day the U.S. legalizes reimportation is the day that Canada will ban exportation of drugs. For if they do not, there will be nothing but generic drugs available to Canadians.
They know the laws and, unlike yourself, they also understand the laws. Drugs are cheaper in Canada because international law treats prescription drugs differently from other consumer products. American drug makers are required under a 1994 international treaty to sell their medicines at drastically reduced prices to comply with an importing country's price controls. Any company that fails to do so risks losing its patent protection: its drugs can be stolen or copied. So, to comply with this treaty, U.S. companies slash prices for countries with price controls -- including most countries in the developed world.
The cost of manufacturing is very high in the pharmaceutical industry. In some cases, half the cost of a particular drug can be incurred in making it. For that reason, economies of scale are extremely important to drug makers. The more they can produce in a line run the lower the cost will be. This is another important reason why drug makers sell to countries with price controls although the threat of losing their patent protection is their primary motivation. Why these governments are allowed to extort the drug industry with this type of coercion is unforgivable. It's not surprising that Canada, like other price controlled countries, produce almost no drugs on their own and rely almost entirely on the U.S.
Do you think an elderly person cares about drug R&D that will occur after his lifetime?
I think there are a large number of elderly who don't give a damn about anyone else as long at they get theirs. To hell with everyone else. These are the same folks who refuse to allow conservatives to fix social security while using their checks to pay for their country club membership. These same people will also complain that the $1 trillion we'll be spending on the prescription drug plan won't be enough. Do these sound like the kinds of people who care whether the golden goose will be there for future generations?
Frankly I myself would be quite happy to let the Canadian taxpayer fund my purchases.
Proof that you really don't understand the issue. The Canadian taxpayers aren't funding anything. Your lower prices are coming at the expense of pharmaceutical company profits. You benefit because socialists elsewhere have decided to dictate the profit a company is allowed to make. Pretty conservative, huh?
If they want to attract these customers, they might want to consider lowering their domestic prices.
And lower their profits which will surely endear them to Wall Street and investors everywhere. The net result will be much less spending on R&D and much fewer discoveries. Bad news for everyone.
Foreign market restrictions should hardly be "competed" against with our own, especially one that serves an industry over the people
Drugs for people not for profit, eh comrade? Do you have any grasp of just how important the profit motive is to innovation? Or, are you one who believes it is their responsibility to the state to create miracle drugs?
Drug companies are responsible for their own R&D to ensure their future profits
You don't understand the relationship between government funded primary research and pharmaceutical company efforts in applications. The only way research gets done on the pharmaceutical end is if they have the profits to do so. What you're suggesting will eliminate the profit and the funding of research.
they don't need our government handing it to them on a silver plate.
LOL!! Handing them what? It costs the drug makers $800 million to develop and commercialize a new drug. Where do you think that money comes from? If you think the pharmaceutical industry is so profitable it should show in their PE ratios. It doesn't.