
California could launch generic prescription drug label - tareqak
https://apnews.com/fbf567dda715d7b277b1d7e161340ea5
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refurb
I find this news quite odd.

The generic drug market is very competitive (with a few outliers). Margin for
high volume generic drugs are measured in hundreds of basis points. California
is likely getting a very good price for generic drugs today.

There are some reasons why they might do this: 1) the odd generic drug where
prices are still high or 2) one of the many generic drugs where there are
shortages. The big caveat is that many of the shortages are for injectable
drugs which are _very difficult to make_ (hence why there are shortages). But
the monetary savings will be pretty limited.

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GeekyBear
There are antitrust actions that would beg to differ.

>What started as an antitrust lawsuit brought by states over just two drugs in
2016 has exploded into an investigation of alleged price-fixing involving at
least 16 companies and 300 drugs, said Joseph Nielsen, an assistant attorney
general and antitrust investigator in Connecticut who has been a leading force
in the probe.

“This is most likely the largest cartel in the history of the United States,”
Nielsen said.

In just one instance of extraordinary cost surges, the price of a decades-old
drug to ease asthma symptoms — albuterol, sold by generic manufacturers Mylan
and Sun — jumped more than 3,400%, from 13 cents a tablet to more than $4.70.

[https://www.latimes.com/business/la-fi-generic-drugs-
prices-...](https://www.latimes.com/business/la-fi-generic-drugs-
prices-20181213-story.html)

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refurb
Doesn’t it make more sense to prosecute the companies rather than just
bypassing them by making it yourself?

Also, CA wouldn’t be making the drug, but rather contracting with a generic
company.

~~~
toomuchtodo
It makes sense to establish your own manufacturing capacity for critical
infrastructure (pharma production) in order to have the necessary control,
while also suing for antitrust actions (and, if feasible, using extracted
penalties to bootstrap the state’s initiative).

~~~
refurb
But this is being framed as cost saving.

Critical infrastructure? Sure, that makes sense. But I highly doubt there will
be much cost savings.

~~~
toomuchtodo
Doubts are reasonable. Government should be held accountable. Reserve judgment
until after the attempt and there’s data. Isn’t this what we want? For
government to iterate to improve quality of life for citizens?

