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[e-drug] Financing drug research and development (2)

E-DRUG: Financing drug research and development (2)

Dear colleagues,

Professor Reidenberg seems to boost the argument I mentioned earlier: If 
industry before releasing a new drug on the market would open its books and 
tell the reimbursement organisations and/or the registration authorities what 
the exact cost of developing that specific drug had been and based its price 
setting on those data - as was done in France and Belgium - the situation would 
be much more transparent. 

It would make it impossible to compensate for losses on older drugs - as 
happened with ranitidine - but it would not solve the problem of exaggerated 
prices asked for old drugs still covered by patent. But at least it would be a 
good step in the right direction. No other industry branch would even think of 
raising prices to compensate for previous losses - they would price themselves 
out of the market. But because 
society has manoeuvred itself in a position of dependence on medicines it does 
not have the power to change the situation - except taking a bus and buying 
drugs in Canada or Mexico. Then you arrive at the present conundrum, where 
prices are determined by "what the market can bear", and the poor drop out of 
the market place. At least the parallel import licensing in the EU has some 
levelling influence.

Best regards,

Leo Offerhaus

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