News Big Pharma Lies

Discussion in 'The Howard Stern Show' started by StillAFan, Oct 7, 2015.

  1. StillAFan

    StillAFan Mult

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    The real reason U.S. drug prices are so high
    Turing Pharmaceuticals CEO Martin Shkreli became the latest poster boy for Wall Street greed when he jacked up the price of an HIV drug more than 4,000 percent to $750 a pill.

    But the former hedge fund manager's behavior is far from unique. Dramatic price hikes on existing drugs, or astoundingly high rates for new ones, are common practice in the United States.

    The pharmaceutical industry defends the price spikes as a means of funding research to develop new drugs. But a close look at the finances of more than a dozen public drug companies illustrates research and development expenses are routinely smaller than company overheads, including marketing costs. And often after-tax profits still greatly exceed those R&D expenses that the companies say are so high.

    A Wall Street Journal report showed drug price increases typically outpace inflation and that they happen even when demand for the product falls.

    CBS MoneyWatch took the list of companies behind a Journal analysis of growth trends for 30 top-selling drugs, and looked at 2014 financial data for the 16 publicly held.

    Here is a list of companies with annual revenue (in billions), R&D (research and development) and SG&A (sales, general, and administrative, a category that includes marketing) and net income (profit after taxes):

    [​IMG]
    Data source: public filings
    Annual revenues for the companies ran from $6.03 billion (Shire) to $74.33 billion (Johnson & Johnson, which includes non-drug product revenues).

    Table listing R&D and overhead as profit as percentages of annual revenue:

    [​IMG]
    Data source: public filings
    In all cases but one, corporate overhead was higher than R&D, and often significantly so. In half, after-tax profits were higher than the research-and-development expenses the industry typically points to as the major reason for high costs.

    According to a May 2015 Credit Suisse report, drug price increases here were a "key driver" of profit growth last year for many multi-national pharmaceutical companies. In addition, while traditional SG&A expenses grew 4 percent year-over-year in 2014, "overall promotional costs rose 17 percent, well ahead of reported sales growth," Credit Suisse found.

    One way of looking at this is U.S. consumers pay more to subsidize marketing activities and profits than to fiance new-drug research.
     
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  2. StillAFan

    StillAFan Mult

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    Universal health care now!
     
  3. maroon

    maroon Well-Known Member Banned User

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    all profits made from the American suckers, mexico, Europe, Canada pay a fraction for the same drugs...our healthcare is the most broken fucked up unaffordable system on the planet. its such a fucking ass raping scam
     
  4. cg256

    cg256 Well-Known Member VIP

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    It's a sad fact that such countries like India get it right when it comes to medicine patents, and how Europe doesn't allow pharmaceutical companies to market directly to the consumer. If they can stop cigarettes from advertising and that isn't against the 1st Amendment, why can't we do it for pills too? Oh thats right, cuz of $$$$$$$$$$$$$$$$
     
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  5. Shortwave98

    Shortwave98 A-Number 1 Banned User

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    Obama fucked that up kissing the ass of the gang bangers and insurance companies.
     
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  6. HowieStearn

    HowieStearn HateClub

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    Ok. if we get rid of "big pharma", then what?
    Lets see how many life saving drugs the government lard bricks come up with. Is that the plan?
    yeah, the Pharm companies are profiteering muthafuckers, they deal with the FDA for years, they have stock holders, and they save lives. maybe yours.
    Thats called Capitalism- which is the best economic system on this planet.
     
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  7. maroon

    maroon Well-Known Member Banned User

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    omfg, i'm so fucking sick of that bullshit answer. why do the same medical tests, procedures and drugs cost a fraction in Germany as they do here..? I used Germany because its an economy in Europe that most resembles ours, but pick any fucking country....we are so fucked by our medical community....fuck this, i'm going to bed. go fuck yourselves with your great system bullshit...fucking rubes
     
  8. HowieStearn

    HowieStearn HateClub

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    you should move to Germany brah :hw: have a nice trip
     
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  9. StillAFan

    StillAFan Mult

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    Access to life saving medication is a right not a function of supply and demand.
     
  10. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

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    I'm sure guaranteeing payments for drugs from the government will solve all this.
     
  11. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

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    Damn straight. You also need food. So we have a right to food.
    And shelter. You'll die of exposure w/o a home. So free homes.
    Medical care, too. The drugs aren't worth anything w/o knowing what to take. So free doctor visits.
    And a right to a jo....uh, nevermind
    [​IMG]
     
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  12. StillAFan

    StillAFan Mult

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    Food, shelter and medical care are guaranteed rights in all first world countries except this one.
     
  13. HowieStearn

    HowieStearn HateClub

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    show me proof of that right.
    maybe if this admin didnt spend all of its money buying votes form slackers, there would be more money for the very sick and the people who really need help- like veterans. think about that for a minute.
     
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  14. Shortwave98

    Shortwave98 A-Number 1 Banned User

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    So 4000% profit is reasonable?
     
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  15. HowieStearn

    HowieStearn HateClub

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    so price controls work? tell that to Apple.
    You have an iphone dont you
     
  16. HowieStearn

    HowieStearn HateClub

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    on Jan 31, 2015, Apple became the most profitable company in history.
     
  17. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

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    We don't have a free market in medical care and haven't for decades.

    When's the last time you saw prices posted at a doctor's office, surgeon, or pharmacy? The price is "how much you got?" or "guess how much?" Because since the average consumer isn't negotiating what he'll pay, an insurer is, it doesn't matter. They pay the copay and deductible and after that they don't care.

    When "somebody else" is paying for it, be it the government or health insurers, demand always skyrockets and prices can rise in that enviroment. I was prescribed some pills that cost about $50/month in total, but my deductible is met so I pay only a small charge on each. I don't take them, but might have to in the future. So I buy them for $50/month and stockpile them for the future, when I may not have such great coverage. They'd cost $500/month if I walked in off the street. Because the system we have doesn't pay me to be frugal. I have no ability to save myself money by being frugal. That is a problem in the market for any service or good.

    If providers were merely required to abide by BASIC CONTRACT LAW and achieve a "meeting of the minds" as to their charges, rather than the BS "reasonable and customary", they would have no customers if they charged current rates. But because consumers think "the insurer is getting screwed, not me, at least for 80% of it" they don't look elsewhere.

    You can't buy health insurance accross state lines. Any idea how corrupt that is? It allows them to set up little price fixing schemes in every state with only a few competitors.

    You have to buy insurance for things you don't want. You may not need maternity care or psychological care or fertility treatments, but by law they have to be included in plans much of the time.

    Remove the potential for profit in anything and you reduce the innovation accordingly. This is basic economics. Competitors enter markets where profits are high. Saturated markets or those with artificial limits on profits will see capital flow elsewhere.

    Americans pay a lot more for drugs than elsewhere because we are carrying the burden for other nations. An American company doesn't mind selling Botswana a $10 pill for $.10, because the cost isn't in producing the drug, but the research, marketing, and overhead involved. They swing and miss on dozens of drugs for every one that "hits".

    Medicine and pharmaceutical companies here are indeed corrupt, but creating some equally corrupt bureacracy will not solve it. Ending corrupt funding of "studies" by drug companies where they rubber stamp their own drugs will. As will governmental legal action against doctors who breach their oaths to get in bed with drug companies and push dubious medications. This will require government funding and testing of drugs. But even this is ripe for corruption due to our system of "legal bribes" we seem to love at election time.
     
  18. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

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    [​IMG]
     
  19. Shortwave98

    Shortwave98 A-Number 1 Banned User

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    Meds isn't iPhones.
     
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  20. HowieStearn

    HowieStearn HateClub

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    that's a yes :snicker: