The Soapbox

BocaHoo91

Joined: 06/03/2005 Posts: 31266
Likes: 52953


I think in this case you're probably right, but going back to


Econ 101, a company will continue to sell a product if the price exceeds its variable cost (as long as the lower price wouldn't bleed back into my primary market and lower my US prices). So if it costs $1 to manufacture and they're selling it for $8 in Australia (I think the far bigger non-US market for this drug is Africa), that doesn't necessarily mean the company can turn a profit (i.e. recover its upfront investment) at anything near $8, it means they make more money selling it in Australia and Africa for $8 than not selling it at all.

I think the actual manufacturing cost for most drugs is near zero, so the profit discussion is almost always about recouping the upfront investment.

It's a tough issue, and there's probably a middle ground to be found on this issue. But if we remove the profit motive, or make it far less certain, the US gov't had better be ready to step in and provide a lot of funding for R&D.

(In response to this post by hoolstoptheheels)

Posted: 05/17/2019 at 1:01PM



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Current Thread:
  Only Republicans are pushing AOC... ** -- hoothat 05/17/2019 10:05AM
  I confess that was about the first thing that jumped out at me. -- hoolstoptheheels 05/17/2019 10:16AM
  Certainly at the gross profit level that is true. -- BocaHoo91 05/17/2019 12:08PM
  Good point. ** -- hoolstoptheheels 05/17/2019 11:56AM
  Ok. And? -- hoothat 05/18/2019 03:21AM
  Looks like their cost is below $8 on this drug -- WahooMatt05 05/17/2019 08:10AM
  The difference between gross profit and -- BocaHoo91 05/17/2019 08:31AM
  I saw this article a few months ago -- WahooMatt05 05/17/2019 08:47AM
  LOL. -- WahooMatt05 05/17/2019 09:48AM
  Do a little research and then post again. ** -- Lazarus 05/17/2019 11:27AM
  Explain his inaccuracies, please. -- hoothat 05/18/2019 03:23AM
  Same thought -- WahooMatt05 05/17/2019 10:42AM
  Would need more details to determine my -- BocaHoo91 05/17/2019 08:00AM
  Teddy and AOC, model citizens! ** -- TomKazanski 05/17/2019 07:36AM

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