This is pure capitalism in action, and an important datum about what happens in free markets. [see edit below] Questcor is cornering the market - this has nothing to do with research or availability. In 2012, they acquired the manufacturing of the pig-pituary-gland version of this drug, called "HP Acthar Gel"[0], and hiked the price from $50 to $28,000 per vial. In June 2014, they acquired the synthetic version calle…
2,000% price hike for infant seizure drug called 'absurd'
31–40 of 74 posts
Re: 2,000% price hike for infant seizure drug called 'absurd'
#32Hopefully more incidents like this will prompt people to question whether granting patents are actually useful to society or not. Patents are after all an artificial (and supposedly temporary) monopoly enforced by society on behalf of a private entity, because society deems the value of this protection will create something beneficial to society as large. Using patents to bump prices of existing, already profitable m…
Drug development is hard, expensive, and littered with failure. There isn't a simple approach to this problem.
Re: 2,000% price hike for infant seizure drug called 'absurd'
#33Quote: "The drug is long off patent." So why not order the drug from China or India? Is the drug expensive to manufacture? Or is it that the Canadian government will only order the drug from select countries? I wish the article dug a little deeper.
There may be requirements to purchase the drug from manufacturers that comply with government regulated quality controls. Not that someone who really needs the drug couldn't seek out an online source to get it cheaply from overseas, but doctors may not be able to legally prescribe it from those places. I don't have any knowledge on the subject though, just speculating. At least in the US buying directly from overseas…
We just get a prescription and have it filled wherever's cheapest. It's not up to the doctor to say where it can be filled...
Re: 2,000% price hike for infant seizure drug called 'absurd'
#34Quote: "The drug is long off patent." So why not order the drug from China or India? Is the drug expensive to manufacture? Or is it that the Canadian government will only order the drug from select countries? I wish the article dug a little deeper.
Re: 2,000% price hike for infant seizure drug called 'absurd'
#35Earlier quoted context omitted.
Yes. A free market is a solution. Naturally regulated markets satisfy customer demands at the lowest cost when compared to the results any other system.
Comcast and Ticketmaster execs would heartily agree with that opinion
Re: 2,000% price hike for infant seizure drug called 'absurd'
#36This is pure capitalism in action, and an important datum about what happens in free markets. [see edit below] Questcor is cornering the market - this has nothing to do with research or availability. In 2012, they acquired the manufacturing of the pig-pituary-gland version of this drug, called "HP Acthar Gel"[0], and hiked the price from $50 to $28,000 per vial. In June 2014, they acquired the synthetic version calle…
This isn't pure capitalism. This is a result of what Mises called "license monopoly". See "The Monopolized Commodity" under https://mises.org/library/monopoly-prices for more discussion of this. "Under monopoly, a greater part of the specific factors of production concerned will remain unused. The common feature of all instances of monopoly prices is that part of the supply, which under competitive conditions would h…
I'll grant you that it is not YET the result of pure capitalism, assuming that there is, indeed, foreign production. But what stops the buyer from consolidating foreign producers as well? It's good for every producer involved - together, they can raise the prices even more.
Totally free markets are unstable.
Re: 2,000% price hike for infant seizure drug called 'absurd'
#37Quote: "The drug is long off patent." So why not order the drug from China or India? Is the drug expensive to manufacture? Or is it that the Canadian government will only order the drug from select countries? I wish the article dug a little deeper.
I also like this quote from a New York Times article:
“If I have to follow U.S. standards in inspecting facilities supplying to the Indian market,” G. N. Singh, India’s top drug regulator, said in a recent interview with an Indian newspaper, “we will have to shut almost all of those.”
The unease culminated Tuesday when a top executive at Ranbaxy — which has repeatedly been caught lying to the F.D.A. and found to have conditions such as flies “too numerous to count” in critical plant areas — pleaded with Dr. Hamburg at a private meeting with other drug executives to allow his products into the United States so that the company could more easily pay for fixes. She politely declined.
http://www.nytimes.com/2014/02/15/world/asia/medicines-made-...
Re: 2,000% price hike for infant seizure drug called 'absurd'
#38Earlier quoted context omitted.
Yes. A free market is a solution. Naturally regulated markets satisfy customer demands at the lowest cost when compared to the results any other system.
Free markets are good a at lot of things, but staying free is not one of them. (Similarly for a democracy, by the way). A "naturally" regulated market eventually converges into one all-powerful monopoly player - it's a stable configuration that maximizes the profit for the owners of that monopoly. So you have to regulate this "freedom" away from disappearing - in the same way that GPL regulates BSD freedom away from…
Re: 2,000% price hike for infant seizure drug called 'absurd'
#39Without more information, I think the indignant tone and format of this article are unwarranted. Before we learn anything, we hear about the human toll: innocent babies will die, parents are distraught, and doctors are furious. But we're provided with no clear information on the reason for the price increase. "When Mallinckrodt acquired Questcor in 2014, Synacthen Depot was one of the products in the portfolio. It wa…
There exists a moral line, somewhere. In this case, parents of children with a rare, dangerous condition and the doctors that treat them find themselves on one side. If the price increase had been negotiated, or given fair warning, or was tied to any documentation of the cost of production, it would be much more tolerable - or at least understandable. Instead, this follows a recent trend of exploiting sick people for…
"Will they pay, even if we raise the price by 20x?"
That's not the kind of behavior I'd like to look back on for my own life, when I'm at the end of my days.
Re: 2,000% price hike for infant seizure drug called 'absurd'
#40Earlier quoted context omitted.
This isn't pure capitalism. This is a result of what Mises called "license monopoly". See "The Monopolized Commodity" under https://mises.org/library/monopoly-prices for more discussion of this. "Under monopoly, a greater part of the specific factors of production concerned will remain unused. The common feature of all instances of monopoly prices is that part of the supply, which under competitive conditions would h…
I take it back; You are right that it is not pure capitalism - in pure capitalism, there would not be FDA regulation which definitely plays a huge part here. But I think the end result is indistinguishable. I'll grant you that it is not YET the result of pure capitalism, assuming that there is, indeed, foreign production. But what stops the buyer from consolidating foreign producers as well? It's good for every produ…