Drug Company Fined $100M For Raising Price 85000%

[Thepersona]

Example #4203B as to why free-market laissez-faire capitalism doesn't work out in practice. Because a market free of government influence is not automatically a "free market"; health care is a clear example where those who need it are not in a balanced negotiating position, since they can't just refuse to participate in the market without serious consequence.

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Well, there's other ways, too. "You've abused your patent filing, so we're negating it and making it public. Now all your competitors can make it, too."

the other way is "hey, you were a greedy bastard, so now we'll nationalize your company, and throw you (CEO) an all of the high execs in jail or execute you"

[Azadina]

Im starting to think you know very little of how R&D of drugs is done. so let me take you a tour. A cancer related medicine can cost around 800mill to 1.2 billion and take around 10 or more years to develop with a succes rate of 13%, not even universities are ready to pay such risk.

Also on a unrelated note fuck off anti-capitalists snobs, specially if you are foreigner because you should be fucking grateful that we subsidize your healthcare by funding R&D.

Do you mean to say, that only succesful cancer treatments are charged? Or how else is the figure relevant?

[Cosmic Janitor]

100m is petty cash for these types.

[NED funded]

Do you mean to say, that only succesful cancer treatments are charged? Or how else is the figure relevant?

When i mean succes rate i mean the % that the new drug is succesfully developed.

[Berengil]

Well, there's other ways, too. "You've abused your patent filing, so we're negating it and making it public. Now all your competitors can make it, too."

Sometimes, Endus, you go way off into the weeds of WTF and I must disagree with you. But on this, you and I are in 100% agreement. If they abuse patent protection (a service provided by the government, which is funded with everyone's taxes), then take their toy away and let upstart firms do the punishing.

[cuafpr]

Example #4203B as to why free-market laissez-faire capitalism doesn't work out in practice. Because a market free of government influence is not automatically a "free market"; health care is a clear example where those who need it are not in a balanced negotiating position, since they can't just refuse to participate in the market without serious consequence.

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Well, there's other ways, too. "You've abused your patent filing, so we're negating it and making it public. Now all your competitors can make it, too."

so much this more than a fine all of their drug patients should now be public property free to use by other companies.

[Dezerte]

you should be fucking grateful that we subsidize your healthcare by funding R&D.

Everyone knows Europe doesn't do healthcare R&D.

Seriously though, I think you'll find that Europe spends about as much (if not more) than the US does on medical R&D. And about half of that is subsidized by the government.

[Ripster42]

Do you mean to say, that only succesful cancer treatments are charged? Or how else is the figure relevant?

13% is about 1/8th. So multiply the 800million to 1.2 billion by 8 for the risks associated with developing a single cancer drug. They need to recoup the costs.

Regardless, that's not what the price hike was about. They essentially bought the patent by buying a company. They then bought the patents for other drugs that could do the same thing the drug they were hiking the price on and didn't sell it, just to prevent other people from competing. This wasn't about recouping development costs, this was just about gouging the shit out of people who can't do anything about it or their baby suffers from seizures and MS.

[Fojos]

Example #4203B as to why free-market laissez-faire capitalism doesn't work out in practice. Because a market free of government influence is not automatically a "free market"; health care is a clear example where those who need it are not in a balanced negotiating position, since they can't just refuse to participate in the market without serious consequence.

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Well, there's other ways, too. "You've abused your patent filing, so we're negating it and making it public. Now all your competitors can make it, too."

I'm not even for free market but this is not free market at all. Owning patents is against free market principles completely. In a pure free market anyone would be able to make any medicine, there wouldn't be copyright or patent restrictions.

[Ripster42]

To those complaining about capitalism, this is an antitrust case, so yeah.

This anti-trust case is socialist in nature. The company bought the patents on the free market. The govt essentially nationalized some of them and made them public.

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I'm not even for free market but this is not free market at all. Owning patents is against free market principles completely. In a pure free market anyone would be able to make any medicine, there wouldn't be copyright or patent restrictions.

The market for the patents is a free market.

[Svad]

Trump will say it was because of him, that the company was charged and forced to pay the fine, within the next 48 hours

*Edit. Sarcasm!

[zEmini]

Irish Government should be putting all the executives into prison. Then the Drug company should be disbanded and all of its drugs and formulas released for generic manufacturing.

[Daedius]

Irish Government should be putting all the executives into prison. Then the Drug company should be disbanded and all of its drugs and formulas released for generic manufacturing.

The Irish Government is fucking useless, such as all the crooked Bankers that fucked up Ireland... not a single one of them saw prison time.

[Tyrianth]

Everyone knows Europe doesn't do healthcare R&D.

Seriously though, I think you'll find that Europe spends about as much (if not more) than the US does on medical R&D. And about half of that is subsidized by the government.

It's funny cause the largest, and third largest, pharmaceutical companies are Swiss.

[NED funded]

Everyone knows Europe doesn't do healthcare R&D.

Seriously though, I think you'll find that Europe spends about as much (if not more) than the US does on medical R&D. And about half of that is subsidized by the government.

Damn it ! Why do you have to prove me right? Where R&D is done is largely irrelevant, because nothing stops a company from profiting on A and then send money to B to research new drugs. That is determined by other factors mainly tax rates and the quality of human capital. Although it speaks nicely of America,where 46% of total R&D is done.

[Tyrianth]

Damn it ! Why do you have to prove me right? Where R&D is done is largely irrelevant, because nothing stops a company from profiting on A and then send money to B to research new drugs. That is determined by other factors mainly tax rates and the quality of human capital. Although it speaks nicely of America,where 46% of total R&D is done.

Except nothing he said proved you right. lol

And in 2016 the US was responsible for 26.4% of R&D, which is comparable to the EU's, and significantly less than Asia's.

[ati87]

Im starting to think you know very little of how R&D of drugs is done. so let me take you a tour. A cancer related medicine can cost around 800mill to 1.2 billion and take around 10 or more years to develop with a succes rate of 13%, not even universities are ready to pay such risk.

Also on a unrelated note fuck off anti-capitalists snobs, specially if you are foreigner because you should be fucking grateful that we subsidize your healthcare by funding R&D.

Except trolls don't invest in r&d, cheaper to pay the rights and then go raise the price a few dozen times

[Barnabas]

They should have taken every single cent those scammers have. Companies like that deserve nothing but banktrupcy.

No just relieve them of the patents associated with the drug that they have the rights to and make it public to whoever wants to make it. What is a drug company going to do to government that can topple a country?

[telygroar]

i quote nixx in another thread on the global warming epa new apointee debate :

Because in our economy the goal is to establish yourself within atop a particular sector and then stifle all innovation that might be costly to you in the short run. Since politicians largely vote in favor of their donors, it's pretty easy.

You are shocked, really ? Why ? because you are directly threatened ? But many other sectors do the same - I will not say the only difference is that they are american so they will not be sued because they pay in america, it happens, but its in fairly "occasional" case - the only difference is that you dont potentially depend for this so you dont give a fuck. Do the same with a potential mortal disease that can affect anyone, people will attack the company members&family with bombs. Do the same with rare disease, they dont give a fuck, its perfectly normal to make a huge margin, be happy they even have taken their time to help you, you leech !

[isuridedes]

Im starting to think you know very little of how R&D of drugs is done. so let me take you a tour. A cancer related medicine can cost around 800mill to 1.2 billion and take around 10 or more years to develop with a succes rate of 13%, not even universities are ready to pay such risk.

If you're going to quote a misleading figure at least do it right; it's $500 Million not $800 Million, and that value was debunked as inaccurate long ago because it takes into account expenses that are tax-deductible as well as expenses that are unrealistic to the risks of drug manufacturing. The 'real' cost for drug development (whether they fail or succeed) is around $110 Million. That's what the drug companies would expect to spend after accounting for what they offset via tax deductions, etc.

That number is mitigated further when you understand that taxpayer dollars already subsidize the cost of drug company research. In 1995 the top 5 selling drugs received over 50% of the funding associated with their research and development through taxpayer funded programs. To make matters even more appalling - the risk/reward for Drug Companies is bullshit. They've been the most profitable business type since 1982, failures and successes and all.

You're (over)paying for drugs your taxes already helped pay for.