[HN Gopher] Big Pharma Greed's Knows No Bounds
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       Big Pharma Greed's Knows No Bounds
        
       Author : sfusato
       Score  : 52 points
       Date   : 2023-01-21 18:04 UTC (4 hours ago)
        
 (HTM) web link (www.thenation.com)
 (TXT) w3m dump (www.thenation.com)
        
       | based_karen wrote:
       | [dead]
        
       | pg_bot wrote:
       | Big Pharma also pays billions in taxes to fund agencies like the
       | NIH. While there are certainly a lot of shenanigans with
       | intellectual property rights and market exclusivity at the end of
       | the day we do get extreme value from pharmaceutical companies. If
       | there was more competition, we would not see price hikes as often
       | as we do.
        
         | xracy wrote:
         | People pretend like competition is some magic thing that could
         | crop up, and not a thing that requires constant regulation to
         | prevent companies from engaging in anti-competitive behavior.
         | Every company is incentivized to engage in anti-competitive
         | behavior. If you want more competition, they need to be
         | strictly regulated.
        
       | ur-whale wrote:
       | https://archive.ph/BxBSk
        
       | akomtu wrote:
       | Greed is a fundamental force of nature that gives life to the
       | capitalism machine and our society. Money are the carrier
       | particles of greed, they enable it to reach far. Corporations are
       | the star-like centers of greed. Even though greed is poisonous,
       | it's far better than fear that was the force behind master-slave
       | societies of the past.
       | 
       | The next iteration of our society will run on pure ambition: the
       | desire to be better, more knowledgeable or skillful, than others.
        
       | pandeiro wrote:
       | [flagged]
        
       | seaourfreed wrote:
       | Don't worry. Congress is going to protect us, and stop all wrong
       | doing. Just kidding. Congress is going to sell us out. Congress
       | will create any and all corruption that the pharma industry want.
        
       | RcouF1uZ4gsC wrote:
       | Even at 100x the price, the COVID vaccines have more consumer
       | surplus than most things people buy.
       | 
       | I want pharma and medical innovation to be huge money makers. I
       | want founders and early employees in companies that innovate in
       | these spaces to be fabulously wealthy. I want ambitious young
       | people to dream of becoming a billionaire by curing cancer rather
       | thank making a social media app.
        
         | bloodyplonker22 wrote:
         | I would like people to innovate as well, but covid vaccines are
         | probably one of the worst examples that you could have used.
        
         | hourago wrote:
         | > I want pharma and medical innovation to be huge money makers.
         | 
         | I want citizens to not die of treatable diseases. Our goals
         | seem to be different.
        
           | RcouF1uZ4gsC wrote:
           | I want citizens not to die of untreatable diseases. It is
           | better to have very expensive treatments for a disease than
           | no treatments for a disease.
        
             | envp wrote:
             | What good is a treatment if you can't access it? If you're
             | poor enough even food poisoning is "untreatable".
        
               | RcouF1uZ4gsC wrote:
               | Presumably at least 1 person would be able to access the
               | treatment. 1 is infinitely greater than the 0 people who
               | would have access to the treatment of there was none.
               | 
               | In addition, like all technology, there is a tendency to
               | go from something for the very rich to something common.
        
             | hourago wrote:
             | > It is better to have very expensive treatments for a
             | disease than no treatments for a disease.
             | 
             | False duality. We can have treatments fairly priced. The
             | only reason that this ones are so expensive is because
             | monopolies and corruption.
        
         | sfusato wrote:
         | _> I want pharma and medical innovation to be huge money
         | makers. I want founders and early employees in companies that
         | innovate in these spaces to be fabulously wealthy._
         | 
         | Sure, in an utopian world that would work. But, here on planet
         | Earth, that would massively increase the incentives of fraud.
         | There are already huge issues with this. Increasing the payout
         | by x100 would do more harm than good in this context.
        
         | gtvwill wrote:
         | Didn't really cure anything tho I'f they price treatment out of
         | reach of the masses. It'd just be better seeing rules in place
         | so billionaires don't exist. The concept one individual can
         | have so much is absurd. Basically a sign of a failing society
         | to allow such polarization between wages at the top and the
         | bottom.
        
         | scotty79 wrote:
         | That's not what happens in Big Pharma. In anything but covid
         | their huge money makers are marketing, lobbying and bribery.
         | Medical innovation lies somewhere at the bitter end.
         | 
         | Successful covid vaccines didn't come from Big Pharma. Moderna
         | and Novartis were not that.
        
         | sokoloff wrote:
         | I agree in part and disagree in part. I want there to be a
         | financial incentive to improve the lives of humanity via
         | medical advances, whether that's pharmaceutical, surgical,
         | assistive devices, etc.
         | 
         | I also want to leave money for the rest of the economy, so that
         | doesn't really leave room for $5200/year/person for 2 COVID
         | shots. (That's about 7.5% of GDP just for COVID shots if every
         | American gets 2 such shots per year, which is pretty obviously
         | untenable.)
        
       | amadeuspagel wrote:
       | If you produce something socially useless, no one cares how much
       | you charge for it, but if you produce something that saves lives,
       | then it's "greedy" to charge as much money as possible for it.
        
         | bobkazamakis wrote:
         | ...yes? Why is "greedy" in scare quotes?
        
         | from wrote:
         | What people also don't realize is that they only have the 20
         | year patent period to make money in. After that the drug is
         | copied by generics companies. This incentivises innovation
         | while also not placing a permanent burden on the economy.
         | Pharmaceuticals are 10-20% of healthcare spending and probably
         | have a very good $/lives saved ratio. Isn't it great how you
         | can just take cefalexin instead of having to get cut open and
         | have an infection drained? 90% of all prescriptions in America
         | are for generic drugs that cost almost nothing. It's easy to
         | blame pharmaceutical companies because it is a somewhat
         | concentrated industry but no one questions why their local
         | urgent care physician is making $275,000 a year to basically
         | Google symptoms and give out prescriptions.
        
           | mlsu wrote:
           | This is the sad reality. Doctors, hospitals, and healthcare
           | admin. staff consume the fat of healthcare market failure.
           | But nobody wants to blame them -- they like their doctor;
           | being a doctor is hard, so if you are a doctor you deserve a
           | Ferrari.
        
           | Sebguer wrote:
           | You're preaching a completely false dichotomy here,
           | especially given that much of the research is publicly funded
           | or heavily based upon existing public research, anyway.
        
             | from wrote:
             | I assume you're referring to studies like
             | https://www.pnas.org/doi/10.1073/pnas.1715368115 that say
             | publicly funded research has contributed to many major
             | drugs. Yes that is true, but exactly how much is hard to
             | quantify. If designing a new drug just required mooching
             | off existing research the return on investment for making a
             | new drug wouldn't be so high -- there is a reason every
             | week small cap pharmaceutical companies on the NASDAQ
             | either 10x or go to zero because of a drug
             | approval/rejection. They are taking an enormous amount of
             | risk! The average drug that gets approved cost a billion
             | dollars to make.
             | 
             | And I can find studies like:
             | https://www.cbo.gov/publication/57126
             | 
             | > In 2019, the pharmaceutical industry spent $83 billion
             | dollars on R&D. Adjusted for inflation, that amount is
             | about 10 times what the industry spent per year in the
             | 1980s.
        
           | tombert wrote:
           | I can't speak for anyone else, but I absolutely question
           | every aspect of why healthcare in the US is overpriced,
           | including but not limited to overcharging for stuff that is a
           | glorified search on webmd.
        
         | happytoexplain wrote:
         | You're putting the word greedy in quotes, but what you're
         | saying is exactly correct. People will pay _anything_ to save
         | their own life. If the market is allowed to react to that in an
         | unrestricted manner, that quickly raises the wealth floor on
         | being able to save your own life, which is, patently, morally
         | incorrect in cases where the profit margin is high. It is
         | antithetical to civilization. The fact that people who disagree
         | with that high-level concept in the _broad_ sense are not
         | vanishingly rare is a desperate societal emergency.
        
         | detrites wrote:
         | Whether true or apocryphal, there exists this intriguing idea
         | that in China's past, they had a system of medicine where
         | doctors were paid a salary when the client was in good health,
         | which immediately ceased if they fell ill.
         | 
         | What's interesting about this, is the rest of the world
         | typically does exactly this, with almost everything but not
         | medicine. With medicine, people can pay more and more for
         | products and services that are working less and less.
        
           | luckylion wrote:
           | We do that with "almost everything"? I can't think of
           | anything.
           | 
           | I don't think e.g. phone service is comparable, because while
           | you might not pay when the service is down, the service's
           | uptime doesn't depend on you. If you destroy your cell phone,
           | you can't use the service, but the service is still working.
           | 
           | If you sold "medicine as a service", it would just include
           | that, but it couldn't guarantee that you'd always be healthy,
           | no matter what choices you made.
        
         | pdonis wrote:
         | _> if you produce something that saves lives, then it 's
         | "greedy" to charge as much money as possible for it._
         | 
         | If you take billions of taxpayer money to fund your research
         | _and_ get special access to information from government
         | agencies like the NIH that the taxpayers paid for, and _then_
         | you try to quadruple the price of what you 're producing after
         | you've already sold billions of units at a nice tidy profit,
         | yes, that's greedy.
         | 
         | If pharmaceutical companies were free market entities who took
         | all of the risk of developing new drugs, then it might be
         | justifiable for them to charge whatever the market will bear.
         | But that's not how drug research works in our society; in our
         | society, we already pay for much of the research with our
         | taxes, so pharma companies that are doing parts of the research
         | and producing the drugs are not operating in a free market.
         | They are benefiting from government largesse, and there are
         | limitations that go along with that.
        
           | nhchris wrote:
           | > in our society, we already pay for much of the research
           | with our taxes
           | 
           | I don't know if there was a study done for the Moderna
           | vaccine funding, but the AstraZeneca vaccine research was 97%
           | publicly funded, so "much" is an understatement.
           | 
           | https://www.theguardian.com/science/2021/apr/15/oxfordastraz.
           | ..
        
           | phpisthebest wrote:
           | >>If you take billions of taxpayer money to fund your
           | research and get special access to information from
           | government agencies like the NIH that the taxpayers paid for,
           | and
           | 
           | And exemption from all legal liability for your product even
           | if due to quality control issues during manufacturing....
        
         | manuelabeledo wrote:
         | Well, yeah? That is, essentially, the definition of greed: a
         | "selfish and excessive desire for something".
         | 
         | I would say that excluding people from accessing life saving
         | drugs, is definitely "greedy", even more so if the company has
         | received a massive influx of cash from the government, like
         | Moderna.
        
         | Swenrekcah wrote:
         | Yes it is. It's the "as much money as possible" part that makes
         | it so.
         | 
         | It's fine to charge cost plus some nice profit.
         | 
         | But trying to maximise the price in a medical context is
         | morally equivalent to finding a person dying in the desert and
         | making them sign all their assets over to you before giving
         | them water.
        
         | guerrilla wrote:
         | Yes, when your life doesn't depend on it, then you don't care
         | as much if someone is trying to exploit you.
        
         | scotty79 wrote:
         | That is correct. If you are away from me then I don't care. If
         | I'm falling to my death but you somehow managed to grab the
         | rope and can stop my fall and pull me back up but instead you
         | use this opportunity to demand as much money from me as
         | possible then calling you "greedy" is literally mildest what
         | anyone can call you.
        
           | lost_tourist wrote:
           | The hep c vaccine is one of the biggest examples of this. No
           | money, no cure.
        
         | tombert wrote:
         | Isn't this the _exact_ justification that Martin Shkreli used?
         | 
         | It's not hypocritical; when your life literally depends on
         | something, and they have a monopoly on the only thing that will
         | save your life, it's absolutely greedy to try and maximize
         | profits.
         | 
         | When Apple overcharges for an iPhone, there are a few things
         | that make this less evil:
         | 
         | 1. There are lots of different smartphones out there that you
         | have the option to buy instead. Even when I worked at Apple I
         | found it surprisingly easy to get by on an Android for my first
         | three months.
         | 
         | 2. I don't die when I don't have an iPhone.
        
           | throwawaymaths wrote:
           | Not justifying fleecing taxpayers, but you also generally
           | don't pay for drugs, your insurance or Medicare does. Most
           | pharma (including iirc shkreli's) companies have access
           | programs.
           | 
           | Not justifying Martin or excessive pharma prices but it
           | really is the case that we should disabuse ourselves from the
           | notion that one should be entitled to life-saving care.
           | 
           | That process comes with a _lot_ of externalities. Most drugs
           | are incredibly costly to manufacture in terms of
           | environmental damage (petrochemical solvents and cosolvents,
           | water for purification, etc). I loved my dad but when he was
           | dying I remember wondering why our society was bearing the
           | ~100k per week cost because he didn 't want to die. When mom
           | was too weak to pull the plug I stepped in and made the hard
           | (easy?) choice.
        
         | thomassmith65 wrote:
         | Worded differently: the less captive the audience, the less
         | significant is the issue of price-gauging.
        
           | robnado wrote:
           | Worded differently: when the demand curve is inelastic,
           | changes in price don't change demand much in the short term.
           | For more elastic curves, higher prices reduce demand a lot
           | more, which incentivizes setting a lower price if businesses
           | are to optimize profit.
        
             | anticensor wrote:
             | Yeah, pricing-based manipulation works only best if supply
             | is completely inelastic but demand is completely elastic.
        
       | nullish_signal wrote:
       | I want an end to Pharmaceutical Ads in the USA
        
         | TrueGeek wrote:
         | I spend $900 a month on an anti-seizure drug. At least, until I
         | hit my $6,500 deductible.
         | 
         | The company that makes it is publicly traded so I looked up
         | their financials. The drug is a generic and the patent expired
         | decades ago. Very little is spent on "R&D". Almost all of their
         | money goes to "advertising".
        
         | nosianu wrote:
         | In support, the headline from four days ago:
         | 
         | > _70% of drugs advertised on TV are of "low therapeutic
         | value," study finds_
         | 
         | > _Ads often tout new, pricey drugs that are not much better
         | than old, cheaper ones._
         | 
         | https://arstechnica.com/science/2023/01/most-prescription-dr...
         | 
         | Also:
         | 
         | > _The US is one of only two countries that allows direct-to-
         | consumer (DTC) drug advertisements, such as TV commercials.
         | (The other is New Zealand.)_
        
           | Mountain_Skies wrote:
           | Amazing how many of them don't even bother to advertise what
           | the drug does. They just show happy people who say they use
           | that brand of drug, often with zero context of what it
           | actually does. It's mainly for brand affinity now.
        
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