Keenan wrote:
Wrong. You are talking out of your arse. You sure like to make s**t up as you go along.
Drug prices in Canada are not being subsidized by us. The companies are making profits at Canadian prices. They just happen to be making massively high margins in the US because of their anti-competitive protectionism and monopoly practices. They have invested lots of $$$ to bribe Congress to keep this extremely anti-competitive monopoly pricing system within the US borders, which they protect by blocking the freedom of Americans to buy drugs from Canada and other countries. For someone who always claims to be on the side of freedom, you are strangely on the wrong side of freedom in this case.
Try again. You should actually do some research and inform yourself of reality, rather than just relying on dogmatic statements that you pull out of your arse while ignoring real world evidence some time.
Try it!
Wrong. You are talking out of your arse. You sure ... (
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I invest in Pharmaceutical companies for a living.
So yes I know what I am talking about.
I own and have owned MRK,JNJ,PFE,MYL and many smaller pharmaceuticals.
I have no reason to lie or misrepresent anything.
I make money based on being objective, not emotional.
What I mean by subsidizing is this.
Japan controls the cost of drugs in their country. They just negotiated a price with BMY for OPDIVO.
Same with the EU. Japans cost is half what we pay here. The EU is a little better than here but not much.
These drugs get there later so they're not on the bleeding edge. People died waiting on OPDIVO in EU and Japan.
MRK now has Keytruda and will go through the same thing.
Our government does not set prices here so we pay more.
That is how we "subsidize other countries.
Now lets look at what happens when you set the prices here.
BMY will take a hit somewhere.
1) Employee pay.
2) Profits....If you look at how long it took OPDIVO to come to market and the cost 1 billion. That company has to recover the cost or go out of business.
3) New development of drugs.(Growth)
Something has to give.
Do you want to sacrifice the future to attempt to lower the cost today? Fewer developers developing new drugs.
Keep in mind that dividend payments come out of profits.
Profits are taxed at the corporate level and then some portion distributed to it's shareholder and then taxed again.
It is commonly known in the business world about what is called the "Double Taxation" of dividend payments.
In the end today BMY makes no more profit than say Hormel Foods.(Drawing equivalence from there Market Capitalization(Price of stock times it's number of shares outstanding)
When Clinton got in office he did to MRK what Trump did to all the drug companies. Both of them drove down the stock market prices based on what they said.
Clintons attacking MRK when he got in office caused a downturn in MRK's Market Cap(Stock Price) for several years.
This is the fundamental reason why no President has attempted to control prices.
Control of prices has been a line that no Democratic president has yet to cross here.
and then comes Bernie Sanders..........The socialist.
I assure you Price fixing won't work. Something will have to give.....
The easy solution is to deregulate to allow drugs not to cost so much by allowing them to come to market quicker.
You will actually k**l less people by doing this. The whole process speeds up.
I am only talking deregulation in the government sense.
Right now Trials are regulated by law.
If I had cancer and I wanted to risk my life with a drug for a chance at life I can't.
I should be able to voluntarily choose to be a test case if I want.
The real delay in drug approvals comes by waiting for the FDA to review and approve.....
Although this is scary for many we have a history to show why drugs are high.
When deregulation was less drugs came to market much faster.
I could give a history of thalidomide but won't. It wasn't introduce here but in England where ironically they had and FDA type structure.
The case of Deregulation in almost every Industry is very strong.
Both Canada, The EU and Japan as well as ever other country on earth are beneficiaries of our tax dollars to support our FDA.
We do the work(pay the taxes) they get the benefit.