Drug Prices

Martin Shkreli became the villain of drug pricing when he increased the price of a $13.50 pill to $750. While the practice of buying up smaller drug companies and increasing the prices of their
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Martin Shkreli became the villain of drug pricing when he increased the price of a $13.50 pill to $750. While the practice of buying up smaller drug companies and increasing the prices of their products is a standard profit-making venture, the scale of the increase and Shkreli’s attitude drew attention to this incident. Unfortunately, while the Shkreli episode is the best known case, drug pricing is a sweeping problem. The August 2016 issue of Consumer Reports features an article on high drug prices in the United States and provides an excellent analysis of the matter—I am using it as the basis for the numbers I mention. From the standpoint of consumers, the main problem is that drugs are priced extremely high—sometimes to a level that literally bankrupts patients. Faced with social pushback, drug companies do provide some attempts to justify the high prices. One standard reason is that the high prices are needed to pay the R&D costs of the drugs. While a company does have the. . .

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News source: Talking Philosophy

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