There are laws in place in Canada and Mexico setting the prices. As long as the drug doesn't cost more to manufacture than the pharma earns selling it, they will accept those price controls and pass all of the R&D costs on to the U.S. market. That's business. But if the U.S. tries to impose he same costs, there will no money to be made developing new drugs (and a lot to be lost). The industry will all but disappear.
It's got nothing to do with being nice or fair. It's simply business.
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...
Manufacturing cost to make the meds is very tiny compared to the retail price. You're right, the cost of R & D is enormous so are the ads they bombard us with.