for every ten drugs developed, only one makes it to market that ONE has to pay for the all the R&D development of the other nine that never made it...
it's not all profit
I don’t know how many drug manufacturers there are left in the US but law suits will drive them out.
Anyway....here’s one thing people need to understand, and this is only one example.
Claritin: 10 mg
Consumer Price (100 tablets): $215.17
Cost of general active ingredients: $0.71
Percent markup: 30,306%
Cost of research, development, testing and advertising: a billion dollars or more.
for every ten drugs developed, only one makes it to market that ONE has to pay for the all the R&D development of the other nine that never made it...
it's not all profit
Visit to doctor: $150
Cost of paper doctor writes prescription on: $0.02
Percent markup: 749,800%!
The cost of a single item used in a drug (or any complex solution) is not indicative of the expenses needed to discover the indicated chemical, pass the entire FDA gamut of testing needed to show that this drug is safe for general human use, pediatric use or end of life use.
Remember Thalidomide? Cheap enough drug, but no one expected a need to look at its effects on future generations.
There is no such thing as a “cheap” or “generic” drug, until AFTER a company spends $100 million and $1 billion to determine if it is even worthwhile.
That is the most asinine, narrow minded, uneducated worthless post I believe I've ever seen. That looks like something the Obama administration would release as reason to do this. You have zip, zero, NO CLUE as to what goes into getting one of these drugs to market. If you did, you'd understand why the consumer price is what it is. The cost of ingredients is almost no factor at all on the selling price. That's like saying that when you buy a car, you're just paying for the raw plastic and metal. Do a little research into what goes into getting one of these drugs to market and you'll understand.
And, yet, you push dog and horse(sh!t) relief on your home page!
Excuse me? Where did you get your consumer price?
The name brand Claritin I found at the most expensive place was $99.97 for 100 tabs and it looks like a big part of the cost there is the making up of a special bottle.
If you are willing to live with items being prepackaged you can get Claritin in the 45 count bottle for $25.56 for 45 tabs.
I can't check on the cost of the active ingredients because they are not available but as the first numbers were so far off I would doubt them as well.
I agree that the price of name brand items is outrageous, although for some people name brand is the only thing that works, but your claims are a bit out there.
Anyway....here’s one thing people need to understand, and this is only one example.
Claritin: 10 mg
Consumer Price (100 tablets): $215.17
Cost of general active ingredients: $0.71
Percent markup: 30,306%
Here is what you fail to take into consideration:
Schering Plough's profit margin last year was 22%. That is a long way from what would be derived from a mark-up you note. I'm not saying your numbers are incorrect, just pointing out that there is more to them. Every person in the distribution chain adds his/her mark-up to the product - it is the reason for being in business. The end cost is not completely determined by the pharma company.
It cost just north of $500 million to develop and bring to market Claritin. Add to this the patient liability and potential nuissance lawsuit payoffs and you are talking some real money. A company making a profit of 22% annually is not gouging - they are doing well in comparison with my industry, but more power to them - why would you risk over a half a billion of investor dollars if there was not an upside on the back-end?
Wow, if ever there was a stupid argument... Here is another one for you.
F-22 fighter jet plans: 5 CDs
Taxpayer price: $10 billion
Cost of CDs: $2
Percent markup: Astronomical
You are paying for the R&D work, not just of the product, but of the products that didn't pan out.
And if you don't like it. Don't buy it.
Your post is so short-sighted, I hardly know where to begin.
When you purchase a pharmaceutical, you're not just paying for the "active ingredients." For most products, you're paying for years and years of research, clinical trials, and other operations in the pharma company developing the drug.
So, don't come to a thread like this, telling people "what they need to understand..." You're not qualified to speak on the subject.
Never heard of research investment, huh? Or testing and registration expense? Nor, evidently, are you aware of overhead, packaging, sales and marketing expense or any other business expenses.
Obviously, you know nothing of accounting. Nor anything about the pharmaceutical industry.