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No. of Recommendations: 2
What I find disturbing is that filling a prescription costs $700+ in the US, but those same pills (made in the US) can be bought in Mexico for $20-30, and probably at similar savings elsewhere in the world. I doubt that the drug companies lose money on selling it at those prices in foreign countries, so the mark-up in the US is pure BS.

It is a problem, but the problem is more the other countries using the US to carry the load of both the development cost and provide the profit incentives. What was the last new therapeutic that was developed in
Mexico, or other non-US / EU area (there are a few, but very few)? Not a great system, but better than any other. I'd also note that pharmaceutical costs are less than 10% of the healthcare spend, but seemingly the easiest target.

The industry has plenty to be shamed about, particularly in terms of promotion of off label uses, but it is hardly one of the most profitable one.

If anyone is truly interested in the dynamics of the pharmaceutical industry, this 2006 60 page document from the CBO is worth reading.
http://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/76xx...

And as for corporate after tax profits, they have never been higher.
http://research.stlouisfed.org/fred2/series/CP/
(not inflation adjusted or log scaled, so exaggerated a bit but still conveys the situation)

Of course banning profits is outrageously stupid, but one does have to wonder why there is not more hiring when companies are so flush (in aggregate). Part of this is business mix, as US does less manufacturing than in the past. Economists expect this to 'mean revert' sometime (which could challenge stock prices). In any case, it does not seem that the largest companies 'need more profits', though small businesses do seem burdened and tend to do most of the hiring.

Ralph
Helical Investor
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