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April 2004, Week 4

HP3000-L@RAVEN.UTC.EDU

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From:
John Clogg <[log in to unmask]>
Reply To:
John Clogg <[log in to unmask]>
Date:
Thu, 22 Apr 2004 11:28:43 -0700
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Mark Wonsil writes:

>If drug companies could sell in Canada in a free market as all of the
>previous examples then I might agree but there are price controls in Canada.

OK, I understand that drug companies have huge research and development costs, as well as product liability costs, which they have limited time to recover, due to expiring patents.  Still this discussion leaves me with one question:  Why would a drug company market its drug in a price-controlled market, such as Canada, if those sales were not profitable?  If we assume that they do make a profit in Canada, then I have to wonder why drugs are so much more expensive in the USA.  Are the American consumers subsidizing the other markets' consumers, or are the drug companies simply gouging Americans?

John Clogg

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