Drugmakers anticompetitive in Europe?

[Plane]

Generic drugs have a 40 percent market share in Europe compared to 60 percent in the United States. Basmah Fahim reports.

http://www.reuters.com/news/video?videoId=94607&videoChannel=5

[Xavier_Onassis]

The consumer in many countries has no motive for demanding a cheaper generic, since the national health insurance pays the cost of drugs. If asked "would you prefer Lasix or fursemide"? the customer would ask "what's the difference?" and hears the answer, "none, but Lasix is made by the original company" would opt for the latter at the same price. The custom is that a generic has a three or four-syllable name, and the original has a one or two-syllable name. The latter is easier to remember and perhaps pronounce, as a rule. The manufacturers will do all they can to maximize profits, and this is where the government agency needs to step in and minimize the cost to the taxpayer.

Generics here in the US can cost six times more in one store than another, and the customer has no real way of finding pricing information easily. Most people won't call four of five pharmacies and be put on hold for hours to find out, and pricing is not available most of the time online for local pharmacies.

[Plane]

Why doesn't the European Commission beleive the explanation is so innocent?

[Xavier_Onassis]

Why doesn't the European Commission beleive the explanation is so innocent?

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I don't think they believe that a desire to maximize profits is "innocent". I don't think that a desire to maximize profits is sinful, but it isn't innocent, either.

The consumers pay a lot less for even name brand drugs: all drug prices are controlled in most of Europe, but name brands are more costly at least until the generic is approved and available. It is in the interests of the drug companies that generics not be approved or made available, because them they have a monopoly. Most companies love monopolies.

Higher profits for drug companies mean higher costs and therefore higher taxes, and the European Commission is concerned with this, as their jobs are at stake.

[Plane]

Consumor prefrence is pretty innocent.

[Xavier_Onassis]

Consumor prefrence is pretty innocent.

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This may be, but the commission was examining the drug companies, who were less innocent.

[Plane]

Consumor prefrence is pretty innocent.

==================================
This may be, but the commission was examining the drug companies, who were less innocent.

What did they do?

[richpo64]

>>The consumer in many countries has no motive for demanding a cheaper generic, since the national health insurance pays the cost of drugs.<<

That is of course misleading. The "consumers" mentioned pay for the drugs through their taxes. Since the government is in charge it has no reason the worry about price, it just takes more. Another reason to oppose such a farce here in America.

[Xavier_Onassis]

That is of course misleading. The "consumers" mentioned pay for the drugs through their taxes. Since the government is in charge it has no reason the worry about price, it just takes more. Another reason to oppose such a farce here in America.

Exactly the opposite is true. The governments do not wish to raise taxes to stoke more profits into the greedy maws of the Pharma companies. THis is why they have PRICE CONTROLS on drugs in most of Europe, and they cost a fraction of what we have to pay here. This article is about how the Pharma companies are preventing generics to be put on the market, and the government is investigating this.

In Europe, they pay less for healthcare and drugs and they live longer.

There is every reason to have socialized medicine in the US.

[richpo64]

Perhaps in bizzaro world it's true, but since the link posted proves the point, ramble on all you like. The only entity that controls markets are people. Government has no interest in price control when they have a bottomless pit from which to draw from.

I give you the $300 hammer as an example.

[Xavier_Onassis]

I give you the $300 hammer as an example.

That was the defense department, or so they say.

Are they still paying $300 for a hammer?

[richpo64]

I have no idea. I do however think it's safe to say that government isn't the best stewards of our money. You like to complain about how much money we are spending on Iraq. I think we both agree 4 trillion on bailouts (and counting) isn't money well spent. There are a myriad of examples of wasteful government spending. Will government run healthcare be any better?

Of course not.

[Plane]

I give you the $300 hammer as an example.

That was the defense department, or so they say.

Are they still paying $300 for a hammer?

I use those sort of tool where I work.

Some tools are worth a lot because they are custom made , this happens a lot for Aircraft tools.

[Henny]

>>The consumer in many countries has no motive for demanding a cheaper generic, since the national health insurance pays the cost of drugs.<<

That is of course misleading. The "consumers" mentioned pay for the drugs through their taxes. Since the government is in charge it has no reason the worry about price, it just takes more. Another reason to oppose such a farce here in America.

Excellent point, Rich. In fact, the ones who are paying attention probably care even more that the tax money isn't being spent as wisely as it should be. And although I strongly support an overhaul of the American health care system, these kinds of things need to be taken into consideration as well.

Another thing. More than a year ago, I posted in here about my shock upon discovering that the prescription drugs in Jordan - the exact same medicines used in the U.S., made by the same drug companies, in the same packaging - sell here for a fraction of the price you pay in the U.S. At the time that I was posting about it, I was traveling back to the U.S. and bringing some prescription meds to my brother who had insurance that didn't cover a medication he needed. That medicine was an example - $350 for a 30-day supply in the U.S. was less than $100 for a 30-day supply in Jordan. Again, the medication was IDENTICAL, and NOT a generic (generic was not yet available of that particular med).

So what gives? On the one hand, I would suggest that the drug companies are adjusting their prices to match the local economies; $100 per month for that med in Jordan would cause the same burden for an average, middle-class person in Jordan as $350 per month would cause an average, middle class person in the U.S. And that's great - so nice of the drug companies to take the local incomes into consideration.

But there also is NO drug company advertising here, either. Doctors read medical journals and attend conferences and educate themselves to find the best medications, they aren't pestered by salesmen promoting new drugs. That alone could explain a big difference in the price.

Anyway, the point I'm trying to make is that even the price of brand name drugs isn't etched in stone. I suggest that Americans are being taken advantage of, and that perhaps Europeans are getting it worse because the buying is happening behind their backs, done by the government, with taxes already paid. And I see that as a BIG problem.

[Henny]

Exactly the opposite is true. The governments do not wish to raise taxes to stoke more profits into the greedy maws of the Pharma companies. THis is why they have PRICE CONTROLS on drugs in most of Europe, and they cost a fraction of what we have to pay here. This article is about how the Pharma companies are preventing generics to be put on the market, and the government is investigating this.

Maybe. Maybe not. A government control isn't nearly as sensitive as a person trying to save a buck. And they could control prices even more if they added generic drugs to the mix.