alt Hacker NewsThe cost of manufacturing drugs is not where pharma makes it’s profits. Look at the margins for competitive generic drugs and over the counter medicine. Margins are tight.
Pharma makes bank on drugs that are patent protected. Squeezing the manufacturing cost is a small gain on top of that.
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azan_ • today at 12:10 PM
> Look at the margins for competitive generic drugs and over the counter medicine. Margins are tight.
Yes, and reducing manufacturing cost if you have tight margin has huge potential for profit.
Yip, drugs are similar to software in this regard. Expensive to develop, very cheap to replicate. It'd make vastly more sense as a nationalized industry, because I think a profit motive is not only unnecessary, but actively harmful because the drugs that help society the most, and the drugs that make the most money, have little overlap.
If a big pharma had the choice between an expensive treatment that could help treat any cancer, or an extremely cheap treatment that could prevent any cancer - which would they pick? The answer when you're motivated by profit is unfortunately different than the one when you're motivated by social benefit. And this is more than just a thought experiment because this issue is going to drive which type of treatments are pursued.