On Monday 05 May 2003 9:25 pm, you wrote:
> well, deri, i was not talking about tyrenol and
> asperine either. i was staying in a dr.'s house when
> in zamboanga. an yes, people are desperate and will do
> what desperate people will do. i have also saw first
> hand the cost of bringing a drug to market. i am not
> without feelings for the people, at the same time, the
> companies are not shooting b.s. about the cost of
> research. if i had the answers, i'd probably be rich
> myself. i pointed out some of this so that the
> discussion would have some facts on both sides. there
> is both sides. to know if the drug companies are
> making more than 6% of capital and research, then they
> are charging too much. if theyare making less than 4%,
> then they are not doing right by their investor, ie:
> stock holders. 4% will after taxes will not allow for
> a dividen and continued research. i wish we had better
> answers. everyone on this list would be happy if it
> were just simple as "cut the price." it is emotional
> becouse it does affect people and is life and death.
> but, it is also ecconomics. no dividen for long enough
> and you'll not have investers. nor will you get the
> next generation of drugs.
>

If only. Novartis (who manufacture Glivec) had an operating margin of over 24%
(thats after 17% ploughed into research). When you look at drug companies
annual reports you would be amazed at the profits being made, particularly
the amounts spent on "promotion" (lobbying politicians).

My beef with the research argument is that there is no regulation over the
areas in which research is done, so market forces mean that research will
gear towards that which will make the company most profit. We may have 8 drug
companies developing the next "bigger & better" Viagra, but how many are
prioritising research into diseases which are only endemic in poor 3rd world
countries.

I fear that drug companies will be side tracked into lucrative social
recreation drugs aimed at rich western society's rather than trying to cure
real diseases. (I.E. if a drug company invented a pill which temporarily
increased IQ by 20 points and charged $50 a pop, how many middle class
western students would take it before exams). Very lucrative.

Cheers

Deri