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Don't Let Obama Kill "Pills for Profit"

hvogel Wrote: Jan 29, 2013 8:01 AM
The drugs are cheaper in Canada and Mexico because the government imposes a lower price by law. As long as the required price is higher than the cost of manufacturing the drug, pharmaceutical companies will always sell the drug at the government imposed price. That means the United States, which doesn't force this price on the pharmas, ends up subsidizing the cost of R&D for Canada, Mexico, and other countries with such laws in place. But what happens if the U.S. follows the lead of those other countries and imposes price restrictions? It will be impossible for pharmas to recoup their expenses so EVERY new drug will end up losing money. If every new drug becomes a losing proposition, no one will invest in their development.
True Conservative! Wrote: Jan 29, 2013 11:27 AM
Thank you, hvogel, for that lucid exposition of economics in action!

Biotech company Excelixis CEO George Scangos likes to quote oil wildcatter JP Getty when asked about his philosophy for success: “Get up early; work hard; find oil,” he deadpans.

And under the direction of dry-humored Scangos, the San Francisco-based company is drilling a lot of research holes, so to speak.

They have to: Success in the biotech industry is measured incrementally, not in big steps. It’s a cash-and-time intensive industry where success is painstaking, rare and, because of Obamacare and other regulatory burdens from the administration, likely to become even rarer.   

According to Plunkett Research, Ltd in 2010 it...

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