Pain_Man
07-25-2004, 12:57 AM
Many of us ask: "Why are drugs so expensive"?
There are a few reasons. Here's some facts on this politically heated subject.
The first reason: it costs between $200M and $500M to get a drug to market. And that doesn't count all the drugs that fail to either work or be approved.
Huge profits have to be generated or investors aren't going to pony up the huge amounts of capital needed to develop the meds we all need.
The industry spends $32 billion dollars a year on research & development. They spend a little more than 2 billion on advertising. BTW, I don't like advertising either. I don't think it helps and you can't possibly get enough info in a 15 or 30 second commercial.
Lawsuits also add a significant chunk to our national drug bill. Many people think of lawsuits as a kind of lottery. I've known people who wanted to get into an accident so they could get "free" money. Of course, it isn't free. If a drug company loses a big lawsuit, especially with so many frivolous ones getting huge jury awards, it's the patients who pay for it, not the company which simply raises prices to cover the legal costs and judgment, if any.
There are a few reasons. Here's some facts on this politically heated subject.
The first reason: it costs between $200M and $500M to get a drug to market. And that doesn't count all the drugs that fail to either work or be approved.
Huge profits have to be generated or investors aren't going to pony up the huge amounts of capital needed to develop the meds we all need.
The industry spends $32 billion dollars a year on research & development. They spend a little more than 2 billion on advertising. BTW, I don't like advertising either. I don't think it helps and you can't possibly get enough info in a 15 or 30 second commercial.
Lawsuits also add a significant chunk to our national drug bill. Many people think of lawsuits as a kind of lottery. I've known people who wanted to get into an accident so they could get "free" money. Of course, it isn't free. If a drug company loses a big lawsuit, especially with so many frivolous ones getting huge jury awards, it's the patients who pay for it, not the company which simply raises prices to cover the legal costs and judgment, if any.