PaleoLiberal wrote:It is quite clear that the process is serious flawed. There is nothing to prevent price gouging in the US. Also, since a medicine for acne or ED used in the US will be more profitable than a medicine for a disease ravaging Africa, guess which one gets more research?
Let's say that BigPharmLabs Inc develops a new drug to cure AIDS. It cost $2bn to get approved. It costs $200,000 to make enough to cure a person but only if they can make enough to supply the entire planet. If the $2bn has to be absorbed over a smaller output, perhaps the cost goes to $300 or even $400m. That is just cost. Add, say, 10% for profit to get the selling price.
In the US we are pretty wealthy and can pay, via insurance and/or govt for this.
What about in Africa, or other countries? They can't. They will pirate the drug. Legally in the case of Canada, India and some other countries that can ignore patents if they don't like the price. Or perhaps illegally by China or other countries.
So now the market is only the US which raises the price to US patients.
And worse, once Canada is making it for cheap, people who would normally pay the fair price of the drug will go to Canada to buy it. That increases US cost and price, sending more people to Canada and so on.
So yeah, focus on drugs like ED and Acne that won't be pirated as much and where the costs and maybe some profits can be recovered.