Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Pharmaceuticals make substantial profits. They spend more money on marketing then R & D. Cut the marketing bull and they can charge less. Their R & D is often assisted by public and private research/........
They don't want to be in the business then get out.
Pharmaceuticals make substantial profits. They spend more money on marketing then R & D. Cut the marketing bull and they can charge less. Their R & D is often assisted by public and private research/........
They don't want to be in the business then get out.
because "we" are the end user. Wouldn't you rather have firms competing for your dollar than the cronyism that exists now? Who is better at looking out for your dollar, you or your congressman?
It has been well documented that the drug companies spend more on advertising than they do on R&D.
Just to put the above statement into context. Apple spends less than 3% of its revenue on R&D. Microsoft is the leader of R&D spending in the computer biz, at 13%. The Pharma industry average for R&D is 21%.
The average spent on sales/marketing in computer biz is about 20%, way more than what they spend on R&D. The average spent on sales/marketing in Pharma is close to 30%.
Spending more on marketing than on R&D is not that unusual across all of high tech, and Pharma is spending proportionally more on R&D than is, for instance, Apple.
I personally think direct marketing to consumers by Pharma should end. But the bulk of their advertising budget is aimed at doctors, not consumers, so that wouldn't change the fact that Pharma spends more on marketing than R&D.
As to the issue of tax payers subsidizing drug development - this happens but there are licensing agreements between the US labs and the Pharma companies that turn the work-product of a US lab into a drug. Tax payers are compensated for the R&D done in a US lab, but generally not by much. The fault there is that the labs are not negotiating better terms with Pharma.
Just to put the above statement into context. Apple spends less than 3% of its revenue on R&D. Microsoft is the leader of R&D spending in the computer biz, at 13%. The Pharma industry average for R&D is 21%.
The average spent on sales/marketing in computer biz is about 20%, way more than what they spend on R&D. The average spent on sales/marketing in Pharma is close to 30%.
Spending more on marketing than on R&D is not that unusual across all of high tech, and Pharma is spending proportionally more on R&D than is, for instance, Apple.
.
Errors of omission - which I assume were intentional.
Apple spends about 7% on Marketing. You lead people to believe AVERAGE is 20%.....
Comparing industries such as this doesn't work out well. It costs Apple almost $400 to make a phone that sells for $1100 or $1200 retail (minus cc fees, wholesale discounts, etc.).
It often costs Pharma $2 to make an off-patent month supply that sells for $20-$1000+
As far as R&D, there are other factors at work. A company like Apple is mostly engaged in continued evolution of the same basic products. They don't "throw away" most of their R&D like Pharma has to. In other words, Pharma is mostly in the business of selling "R&D". whereas Apple sells hardware and services. The Generic drug biz is really more like the vitamin or supplement business - whoever has the faster machines for producing and packing and whoever has the best sales force will probably get a lot of the sale.
But back to the OP. In general Americans pay about double the cost of health care....with the same or more negative results. This is 100% PROFIT driven and has nothing to do with us paying for anyone else.
This talking point mirrors the "we defend the world" one....both are injected into our thought stream by the forces (companies) that make TRILLIONS off of the services provided.
Would anyone ever expect Boeing to inject a talking point saying "We've proven that all of our war machines have cost the American taxpayers vastly more than even they are paying due to destablization of most of the world"? Nope!
They spread "We are paying for defending those dang Germans"....
What would go a long way is banning the advertising of prescription drugs directly to the consumer. Among the entire world, only the US and New Zealand allow direct-to-consumer advertising, which is an enormous part of the pharma industry's costs.
And the government of New Zealand actually negotiates affordable drug prices for their people, leaving Americans as the only ones stuck signing drug companies blank cheques.
Errors of omission - which I assume were intentional.
Apple spends about 7% on Marketing. You lead people to believe AVERAGE is 20%.....
Comparing industries such as this doesn't work out well. It costs Apple almost $400 to make a phone that sells for $1100 or $1200 retail (minus cc fees, wholesale discounts, etc.).
It often costs Pharma $2 to make an off-patent month supply that sells for $20-$1000+
As far as R&D, there are other factors at work. A company like Apple is mostly engaged in continued evolution of the same basic products. They don't "throw away" most of their R&D like Pharma has to. In other words, Pharma is mostly in the business of selling "R&D". whereas Apple sells hardware and services. The Generic drug biz is really more like the vitamin or supplement business - whoever has the faster machines for producing and packing and whoever has the best sales force will probably get a lot of the sale.
But back to the OP. In general Americans pay about double the cost of health care....with the same or more negative results. This is 100% PROFIT driven and has nothing to do with us paying for anyone else.
This talking point mirrors the "we defend the world" one....both are injected into our thought stream by the forces (companies) that make TRILLIONS off of the services provided.
Would anyone ever expect Boeing to inject a talking point saying "We've proven that all of our war machines have cost the American taxpayers vastly more than even they are paying due to destablization of most of the world"? Nope!
They spread "We are paying for defending those dang Germans"....
25-30% of hospital costs are administrative.
A widely cited study published in The New England Journal of Medicine used data from 1999 to estimate that about 30 percent of American health care expenditures were the result of administration, about twice what it is in Canada. If the figures hold today, they mean that out of the average of about $19,000 that U.S. workers and their employers pay for family coverage each year, $5,700 goes toward administrative costs.
By one estimate, for every 10 physicians providing care, almost seven additional people are engaged in billing-related activities.
It is no surprise then that a majority of American doctors say that generating bills and collecting payments is a major problem. Canadian practices spend only 27 percent of what U.S. ones do on dealing with payers like Medicare or private insurers.
Now, the question is-how do we get the rest of the world to help bear the costs of developing these lifesaving treatments?
Who is “we”?
Seems to me medications cost whatever a market will pay.
With the exception of NZ, no other countries allow medications to be marketed directly to consumers.
No other country prescribes medications to the extent that occurs in the US, especially opioids.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
