Manufacturing costs of most drugs are miniscule. Virtually all of their costs and from R&D and the regulatory process.
replyHow exactly is there no potential for large profit there? I’d say there potential for huge profit if you reduce cost of manufacturing drugs!
replyThe 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.
replyPharma makes bank on drugs that are patent protected. Squeezing the manufacturing cost is a small gain on top of that.
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.
replyIf 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.
Problem with those expensive treatments is that there are not that many cases. So profit from each is big but overall they add up to less. Getting everyone who can afford it on planet on some relatively cheap drug would be lot more profitable overall.
replyGet million out of thousand people or ten out of billion people... Later would be preferable.
Well there's also the third option of get a million out of a billion people. And that's only one side of the perverse equation. The other is rent-seeking. A treatment that needs to be redone or repeatedly boosted is far more profitable than a treatment that simply solves something once and for all, especially if that 'solving' treatment can be done cheaply.
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