> Behalf Of JDG
> 
> Lately many liberals have suggested that the US government 
> should use its
> buying power to try and drive down prescription drug prices and
lower
> profits.    I think that it is worth considering what 
> consequences this
> same policy has wrought in the market for flu vaccines - the 
> government
> buys most of the nation's vaccines, and many flu vaccine 
> producers have
> since proceeded to get out of the flu vaccine business, which 
> left (pardon
> the pun) all of our eggs in one basket.   

I don't know.  In another thread, there is a discussion of whether
NASA is in trouble because they are relying on a limited number of
suppliers.  That certainly isn't because of cost reduction issues at
NASA, I don't believe.  I think this has more to do with the second
part of your email: the government buys most of the vaccine.
Wouldn't that make for limited suppliers as there isn't much
competition for buyers, regardless of price?  

 - jmh
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