John Williams wrote: > Drug development is an industry with high fixed costs. Once those fixed, > or sunk, costs have been committed, the drugs are sold for the price that > the market will bear. According to the expert who wrote the article, the > more socialized markets settle on a lower price than the less socialized > markets. If all markets were socialized, then all the prices would be lower. > Then companies would not be able to justify committing the fixed costs > on future development of some drugs, and some drugs would not be > developed.
What if there were government incentives/grants to develop the pharms? It seems to me that the free market does a poor job in this regard; emphasizing stuff like boner pills because they're wildly profitable and in recycling previously developed drugs with slight adjustments in formulation or in combination with other drugs. There is a huge disincentive to develop something like a cure for the cold because over the counter remedies are a hugely profitable industry. Doug _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
