One of the keys to the plan is just more of his America First theme--

He has also urged other countries to pay more for drugs, including in the Friday speech, saying that “when foreign governments extort unreasonably low prices from U.S. drugmakers, Americans have to pay more to subsidize the enormous cost of research and development.”

If that happens — and it’s unclear how or whether it would — that could be great for U.S. drugmakers, according to a report from RBC Capital Markets analysts.


https://www.marketwatch.com/story/your-g...2018-05-14

It would be huge for the US pharmaceuticals, as well as US consumers.

All of those single-payer countries and government run healthcare systems will take a smack.

This will be what gets him impeached.

Lowering drug prices is very fascist. And racist. And misogynist. Also white privilege.

I swear to Huskie Jebus that if Trump ran with a D behind his name the liberals would be putting him up for Mt Rushmore consideration.

If other countries don't respect this, then IMO it's time to recall a few of our ambassadors, and send a few of theirs packing. And I would schedule massive military exercises off the coast of any country that balks at complying. I would pass a US law providing that 1) it is a criminal offense under US law for any foreign government to require the sale of drugs at a price tat does not include full amortization of R&D costs (and I would lock up the senior representative of any such foreign government in the US), and 2) if any US drug company agrees to sell any pharmaceutical at a lower price overseas than here, then its patent for that pharmaceutical expires. I would make an exception for developing countries, but not for the developed world.

(10-25-2018 05:47 PM)Owl 69/70/75 Wrote:  If other countries don't respect this, then IMO it's time to recall a few of our ambassadors, and send a few of theirs packing. And I would schedule massive military exercises off the coast of any country that balks at complying. I would pass a US law providing that 1) it is a criminal offense under US law for any foreign government to require the sale of drugs at a price tat does not include full amortization of R&D costs (and I would lock up the senior representative of any such foreign government in the US), and 2) if any US drug company agrees to sell any pharmaceutical at a lower price overseas than here, then its patent for that pharmaceutical expires. I would make an exception for developing countries, but not for the developed world.

Expiring the patent - that's a great idea!! Same for foreign markets not participating in the R&D costs. Too many of them have had a free ride for far too long.

Man I hope he can pull this off....

Is there anything other countries were not taking advantage of from us?

I've been saying this for a while. In particular, it is totally unjustifiable for Canada or Europe to do this.

This story was from May. Is there any update on the plan since his Friday speech (which is why I looked at the link to begin with - I thought it was odd they were talking about his Friday speech on a Thursday)?

This would be extraordinarily absolutely great. If it doesn’t stifle research. One of his recent suggestions for improving the system is to require drug companies to reveal pricing in their commercials. I know many of the biologics being advertised for psoriasis and psoriatic arthritis are $4,000 to $5,000 a month. That’s impossible for someone who doesn’t have a true cadilac plan or isn’t a lottery winner.

Why do the companies sell them at a loss?

(10-25-2018 05:53 PM)Crebman Wrote:  

(10-25-2018 05:47 PM)Owl 69/70/75 Wrote:  If other countries don't respect this, then IMO it's time to recall a few of our ambassadors, and send a few of theirs packing. And I would schedule massive military exercises off the coast of any country that balks at complying. I would pass a US law providing that 1) it is a criminal offense under US law for any foreign government to require the sale of drugs at a price tat does not include full amortization of R&D costs (and I would lock up the senior representative of any such foreign government in the US), and 2) if any US drug company agrees to sell any pharmaceutical at a lower price overseas than here, then its patent for that pharmaceutical expires. I would make an exception for developing countries, but not for the developed world.

Expiring the patent - that's a great idea!! Same for foreign markets not participating in the R&D costs. Too many of them have had a free ride for far too long.

Man I hope he can pull this off....

Owl #s, I believe if you make any exceptions to that kind of policy it won't work. They'll just play middleman to the countries you don't except, and still the poor needy people in the developing world will not get what they need. Kinda like govt aid to poor nations now. It doesn't work. Only private, independent non-government funded charities have a chance.

(10-25-2018 07:13 PM)Marc Mensa Wrote:  Why do the companies sell them at a loss?

They don't.

Someone else may be able to give a better example.... but if you invest $100 in R&D and it costs $1 to produce a pill from that R&D, then the cost to produce 1 pill is $101. To produce 2 pills, $102. If the first person pays $101 for the pill and the second only $1, then the costs are covered.

The US is a massive market so that $100 R&D gets amortized here... and every purchase of the same drug for more than the incremental cost of producing the pill ($1) is profit.

What SHOULD happen is that to produce 2 pills is $102 so each pays $51, but that's not what happens.

Ohhhhhhhh boy they're not going to like this in Ottawa or London.

(10-26-2018 01:27 AM)georgia_tech_swagger Wrote:  Ohhhhhhhh boy they're not going to like this in Ottawa or London.

Frankly, I could care less if Ottawa or London likes it.

I actually find it amazing that our government has allowed the American people (and the government via Medicare/Medicaid) to shoulder the R&D burden while foreign countries reap the benefits as virtual freeloaders......

Maybe one of the most egregious examples of what Trump calls "bad trade deals" that we have.

(10-26-2018 12:13 AM)Hambone10 Wrote:  

(10-25-2018 07:13 PM)Marc Mensa Wrote:  Why do the companies sell them at a loss?

They don't.
Someone else may be able to give a better example.... but if you invest $100 in R&D and it costs $1 to produce a pill from that R&D, then the cost to produce 1 pill is $101. To produce 2 pills, $102. If the first person pays $101 for the pill and the second only $1, then the costs are covered.
The US is a massive market so that $100 R&D gets amortized here... and every purchase of the same drug for more than the incremental cost of producing the pill ($1) is profit.
What SHOULD happen is that to produce 2 pills is $102 so each pays $51, but that's not what happens.

Very well explained. In economic terms it is the difference between average cost and marginal cost.

(10-25-2018 11:46 AM)Lord Stanley Wrote:  Lowering drug prices is very fascist. And racist. And misogynist. Also white privilege.

I swear to Huskie Jebus that if Trump ran with a D behind his name the liberals would be putting him up for Mt Rushmore consideration.

Yep.

(10-25-2018 06:05 PM)solohawks Wrote:  Is there anything other countries were not taking advantage of from us?

No kidding.