L last week we learned that Merck was planning to charge Americans 40 times its cost for a Covid drug whose development has been funded by the US government. situation highlights two sets of facts that have also been largely ignored in the legislative debate over whether to let Medicare negotiate for lower drug prices.
First fact: Americans are faced not only with expensive drugs, but also prices that are examples of pure profit.
Fact 2: In many cases, the drugs we get ripped off are the ones the public has already paid for.
These facts tell us show pharma funded Democrats trying to kill drug pricing measures aren't just bought and paid in this particular skirmish - they're foot soldiers in the pharmaceutical industry's biggest decades-long campaign to seal and rig America 's so-called "free market ".
First, there is the price of drugs. not just that Americans pay the highest prices in the world for pharmaceuticals, it's that in many cases we pay prices that are not even close to what consumers in other countries pay.
A new public citizen analysis shows that the 20 best-selling drugs generated almost twice as much revenue from the pharmaceutical industry in the United States than in all other countries combined. Of course, compared to others, Americans can buy a lot of preion drugs, but this study reflects something far more important at play: public policies sculpted by pharmaceuticals that allow drug price levels to drop. 'go beyond profit and make profit.
This term "profit " is important here because drugmakers don't waste much 'money in other countries where they sell drugs at lower prices.
Remember: pharmaceutical companies are not oAltruistic charities that sell their products abroad at a loss. On the contrary, they always make healthy profits at lower prices in the world market - and like Lee Fang of Intercept notes , they make these healthy profits while boasting of innovation and job growth in countries that have allowed their governments to use wholesale purchasing power to negotiate lower prices.
The same arrangement could occur in United States. We could dramatically reduce drug prices, saving Medicare and individual consumers hundreds of billions of dollars, and in doing so, we wouldn't do much to dramatically curtail pharmaceutical innovation. Indeed, a recent target of the Congressional Budget Office a study provided that even if the profits on major drugs were reduced by 25%, this would result in an average annual reduction of 0.5% in the number of new drugs entering the market over the next decade.
The reason why the reduction of new drugs would be so small comes to the utic rhetoric of utic industry self-congratulations on its own innovations, the federal government uses money from your taxes to fund much of this innovation, research and development.