Drug price's high because of research and development, a big lie.

[Spytheweb]

Drug companies are changing one molecule of a drug and reselling it under another name so they can have rights to it.

This is what happens when you deal within the US health care market. I just heard about this yesterday. I heard many times how the cost of drugs in the US is high because of research and development. They just won't give up their profits and will said anything to keep them. The fact that they hold people's lives in their hands does not matter. All that matters is if you can pay or not.

"Of $200 billion in yearly sales, the prescription drug industry spends only $5-6 billion (2.5-3%) on creating new drugs. That very limited expenditure on new drugs has produced very few drugs that can be called innovative or an improvement on older, less expensive, drugs. Compare that $5-6 billion figure with (1) the $3.8 billion spent yearly on direct to consumer (mostly TV) advertising or (2) the 35% of their revenues ($70 billion) spent on marketing and administration (data obtained by Dr. Angell from Securities and Exchange Commission (SEC) and shareholder reports for 2001)."

http://www.psc-cuny.org/drugprices.htm

 

[ferdville]

I have a good friend that works in the industry. A huge amount of money is spent on the trials which are required (obviously). He sets up several drugs tests throughout the U.S. and overseas. They have to pay the doctors a bounty for each patient involved in tests. The research also has to be fully documented to the nth degree. Each proposed drug is tested in a variety of areas as well. Not disputing that drug companies make huge profits, but they do spend a fortune on testing.

 

[SixFive]

this is the closest I have ever come to agreeing with stw.

 

[Spytheweb]

I have a good friend that works in the industry. A huge amount of money is spent on the trials which are required (obviously). He sets up several drugs tests throughout the U.S. and overseas. They have to pay the doctors a bounty for each patient involved in tests. The research also has to be fully documented to the nth degree. Each proposed drug is tested in a variety of areas as well. Not disputing that drug companies make huge profits, but they do spend a fortune on testing.

$200 billion in revenues generated by selling drugs in the U.S. how much of this goes to these trails?

"Of $200 billion in yearly sales, the prescription drug industry spends only $5-6 billion (2.5-3%) on creating new drugs. That very limited expenditure on new drugs has produced very few drugs that can be called innovative or an improvement on older, less expensive, drugs."

 

[gardenweasel]

$200 billion in revenues generated by selling drugs in the U.S. how much of this goes to these trails?

"Of $200 billion in yearly sales, the prescription drug industry spends only $5-6 billion (2.5-3%) on creating new drugs. That very limited expenditure on new drugs has produced very few drugs that can be called innovative or an improvement on older, less expensive, drugs."

unforunately you`ll likely get your way,omar...under obama`s new single payer government health rationing,research and development will die.....

what do you think is the motivation of research and development?(don`t strain yourself...it`s profit)...

and under a single payer governmental system in which the government decides who gets paid what,any incentive as far as research and development goes up in flames....

i don`t know where you guys get this unwarranted sense of entitlement from..........lets look back in a few years after commie care has taken hold.....see how desperately you`ll wish you could have a restore point for your old healthcare....

this socialist in the white house could do something for the 20-million that legitimately don`t have health care(not those that choose not to buy it or illigal aliens) without wrecking the entire healthcare system for the huge majority that are happy with what they have....

but he wants control..of the banks..the auto industry...forced union membership....like hugo chavez,castro ,morales and his buddy from honduras manuel zelaya....

 

[ferdville]

When there is no longer profit in the R & D sector of the drug market, there will be limited or no R & D. Who will fund it? Not only that, promising drugs in the development will be abandoned. Yes, the drug company profits are alarmingly high as are the oil companies for example. But they are also providing a great service to the world and as such should be able make as mch profit as the market bears. Oh, no - I forgot - that happens in a free market economy. Shame on those who make a profit. Why work so hard for gain when the government is going to take care of your every need.