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Are people not understanding how drug prices work?

Intellectual property law is a way for government to grant exclusivity to one firm. This whole "you can get it for x in Canada and y in Germany" is a silly conversation. It's not like it costs 1000x to manufacturer the drug here vs there. The R&D and marketing costs are amortized over the period of exclusivity. Saying "you can just go to Canada to get it" just means "im going to circumvent intellectual property law." It's kind of like, but not quite, piracy. You're choosing where and when which laws apply to you. It also kicks the can down to the rest of the people buying the drug, because we know the pharma actuaries arent going to price their drug at a loss. And then on top of that, like you say, these prices people pay AFTER insurance arent what the cost of the drug is to the population, its an already subsidized price.

Germans and Canadians are getting the drug cheaper not only because they have different laws, but because the R&D recovery isnt evenly split between country, they take their money where they can get it.

Insulin SHOULD be generic by now (the patent on long-acting synthetic insulin expired in 2014), but the companies continually improve it and always sell the latest variant. And of course Doctors are going to prescribe what works best.



Unfortunately, numbers don’t back Big Pharma’s talking points.

1. A lot of drug patents are bought by hedge funds that just raise prices to reap profits and never invest in R&D

https://www.nytimes.com/2015/09/21/business/a-huge-overnight...

2. Drug companies spend more on marketing than R&D:

https://www.washingtonpost.com/news/wonk/wp/2015/02/11/big-p...

3. Because of lobbyist, Medicare can’t negotiate drug prices - unlike the VA in the US and every other country.

https://www.forbes.com/sites/johnwasik/2018/08/10/why-medica...


> but because the R&D recovery isnt evenly split between country,

This point, which always comes up in these threads, has already been debunked both in those other threads, but it was even debunked here before you made this comment.


You're saying drug companies make an equal amount of extra money, after manufacturing costs, in every country?




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