[e-drug] Can we standardise the pharmaceuticals' mark-up on cost? (10)

["Peter Mansfield" <peter.mansfield@adelaide.edu.au>]

E-DRUG: Can we standardise the pharmaceuticals' mark-up on cost? (10)
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James,

You suggested that "When a new moiety obviates or shortens hospitalization times, the manufacturer quite reasonably prices it in light of those savings".

Such overpricing is only possible when markets are malfunctioning contrary to the interests of society as a whole.

See:

Baker D. Financing Drug Research: What Are the Issues? 
Washington DC: Center for Economic and Policy Research; 2004 Sep 21(3) 
www.cepr.net/publications/intellectual_property_2004_09.htm

Mansfield PR. What everyone needs to know about drug marketing. Part 2: Prices.
Healthy Skepticism International News 2007 January;25(1)
www.healthyskepticism.org/news/2007/Jan.php

regards,
 
Peter
 
Dr Peter R Mansfield OAM BMBS
GP
Director, Healthy Skepticism Inc
www.healthyskepticism.org
Lecturer, Discipline of General Practice, University of Adelaide
www.adelaide.edu.au/directory/peter.mansfield