Marginal Revolution: Price Controls on Pharmaceuticals
Posted by: Slocum at Feb 2, 2007 7:38:26 AM
I agree that it is not a good idea to regulate pharmaceutical prices.
However, the best place to invest in medical research is the National Institutes of Health.
Posted by: Bill Gardner at Feb 2, 2007 8:10:50 AM
Bullshit. Major pharmaceutical companies are rarely more than a marketing and distribution arm for small ventures focused on one or two medicines initially funded by capital markets and for government research, an arm that nevertheless takes most of the money. They are to medicine what the RIAA is to music. Medicine should be funded by international government-funded prizes for medicines, with capital markets providing the research and initial testing money, with the patents released freely for generics companies to compete making. Lipitor was totally unnecessary, by the way.
Posted by: bhauth at Feb 2, 2007 8:38:38 AM
What percentage of drugs that would be "price-controlled" (accepting for the moment this not-quite-accurate description of what Congress is talking about) actually "save lives"? Lichtenbeg's study demonstrating the "very high benefit-to-cost ratio" uses as evidence drgus that extend life, so Propecia, Viagra, etc., are not relevant. More important, as Bhauth says, there's little evidence that the proliferation of drugs that all attempt to solve the same problem has improve the benefit-to-cost ratio of drug purchasing.
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