The Donald takes on Big Pharma
donsurber.blogspot.com,
by
Don Surber
Original Article
Posted By: Chris Jr.,
7/5/2019 7:53:12 PM
Not everything Bernie Sanders says is garbage. Drug prices are too high. President Donald John Trump has come up with a way to bring those prices down that doesn't involve the federalization of Big Pharma.
United Press International reported, "President Donald Trump on Friday said his administration intends to announce a plan to decrease prescription drug costs based on the lowest price other countries pay.
"He called it a favored-nations clause."
Hmm.
This sounds interesting.
Reply 1 - Posted by:
john56 7/5/2019 8:11:13 PM (No. 115284)
Having been a part of "big pharma" in the 80s until about 15 years ago, well, go for it.
Sometime in the 90s, the hucksters, the marketers, and the descendants of the prairie snake oil salesmen took over the what-was-then-known as the "ethical drug" business, where sales people (known as "detail men" although ladies were a part of the profession when I was in the business) and started selling drugs like they were lollipops. Doctors and medical professionals were now considered consumers to be taken advantage of or bought. Slick ads took the place of reasoned, serious discussion. Instead of product movement and adoption, "metrics" like the number of clicks on your computer and how many dog-and-pony shows you held (usually with little or no attendance) was important. Hiring cute young girls (usually cheerleaders), who could be easily convinced to dress provacatively and even in costume at certain times of the year to entice physicians were the norm. I remember "dash-and-dine" and "gas-and-go" promotions some companies would have -- doctors would be invited to stop at a certain restaurant or a gas station and would get meals-to-go for their family or a tank of gas and would listen to a sales pitch from the local rep.
Fortunately, I was in a part of the business where that was not common. But acquisitions and such hit the business and sooner or later you got caught up with the metrics and the industry figured once you were in your late 40s with 20 plus years, it was time to can you before age discrimination became an issue and hire a cheaper youngster to do your job (and so what if they lost 20% or more of your business, they're paying them less anyway).
I hope President Trump hands it to these folks. They deserve it.
11 people like this.
Reply 2 - Posted by:
Pepper Tree 7/5/2019 8:38:25 PM (No. 115306)
Boinie Sanduz will handle this one easy. He’ll condemn it as a
publicity stunt and when when Trump is successful, Boinie will
say, “Whut took youse so lon-guh?”
5 people like this.
Reply 3 - Posted by:
seamusm 7/5/2019 9:35:32 PM (No. 115333)
Pharma's most egregious promotional activities have been pretty much eliminated these days though hiring young pretty sales people is still the norm. Most docs take the sales pitch with a grain of salt but also find the sales force helpful in terms of introducing newer drugs and indications for slightly older drugs. I confess that my patients benefit from free samples of the newer medications. What I detest is old drugs having prices jacked up to unconscionable levels and insurance preferences which fail to keep prices reasonable. Insulating patients from costs by hidden insurance agreements and Pharma's using the USA for their profits under the guise of 'drug development' while allowing the rest of the developed world to ride on our dollar 'coat tails' is another pet peeve. I like this idea of pricing by 'favored nation'.
7 people like this.
Reply 4 - Posted by:
davew 7/5/2019 10:45:52 PM (No. 115368)
What President Trump is proposing is a form of virtual arbitrage. In physical arbitrage consumers in the US would buy drugs in countries with lower prices like Canada and have them shipped back to them. The FDA has been able to block this based on concerns about the safety of the drug supply once it is outside the border but studies have shown that Canada's drug safety procedures are actually better than the US.
In virtual arbitrage the price paid is determined by a reference price to some external standard and the consumer receives a domestic version of the drug at this price without the shipping costs and safety issues. Producers would need protection from reference prices based on developing countries with vastly different per capita income levels but once the virtual prices were established some countries would pay more and some less until an equilibrium was reached. In addition there would need to be incentives to reduce advertising and marketing costs on a graduated basis over the patent protection period. If the correct balance can be achieved the impact on R&D innovation would be minimal based on some economic studies such as those from the Yale Journal of Health Policy, Law, and Ethics.
3 people like this.
Reply 5 - Posted by:
DVC 7/6/2019 12:58:11 AM (No. 115436)
The biggest problem with "big Pharma" is that huge portions of their market in Europe has prices cut unfairly low by socialist government decree, so they are forced to make it up in about the only remaining free market....the USA.
Basically, WE are subsidizing those cheap drug prices in Canada and Europe.
And 75% of the money spent on them getting a drug approved is probably wasted due to government bureaucracy.
1 person likes this.
Reply 6 - Posted by:
Trigger2 7/6/2019 3:33:24 AM (No. 115484)
The subversive Death Party will hate this because it would prevent them from getting big campaign donations. Frankly I like it. Why should us citizens pay more for a prescription so we can subsidize other countries getting it on the cheap?
1 person likes this.
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