Tuesday, September 22, 2015

Price gouging

That's the only term for when drug companies hike prices 5000 percent. One drug went from $13.50 to $750 (no I am not missing a decinal point). Thats a big price increase. I could not believe it when I read the article.

"Although some price increases have been caused by shortages, others have resulted from a business strategy of buying old neglected drugs and turning them into high-priced “specialty drugs.”"

And its not just one drug, its several. So what happened to the old justification of the research and development costs are so high? There were no new development costs. Probably just marketing crap, once again.

1 comment:

Teresa Saum said...

The one drug I think you are talking about was manufactured by a company that was recently purchased by some young former hedge fund manager. I don't even know for sure what a hedge fun manager is, but apparently has a butt-load of money and he wants more. It's avarice and general lack of conscience.