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SW Saskatchewan | And Americans shouldn't be surprised that the drug companies are doing it.
Even the big auto companies do it-if there is any way that you can divide a market into separate and distinguishable parts, the same price in both markets will not lead to profit maximization. This is why there can be up to a 30% difference in price for identical autos sold in Canada and the US..
In Canada, the provincial govts are big purchasers of drugs for (a) hospitals and (b) for provincial drug insurance programs. Gives them a lot of power when they call for contracts to supply drugs-if any supplier breaks ranks and will sell for cheaper, the other competitors are left empty handed.
Mind you, the drug manufacturers have their own tricks such as shutting down plants to create a shortage on drugs that they have patent on but Canada has strict generic drug manufacturing and licensing rules-a lot of drugs get manufactured by generics under license.
And the innovation and research....Scientific American had a good article a few years ago on how researchers who were given lucrative speaking engagements or research funding by drug companies turned in far more favorable studies on their sponsors products than were found in the cases of researchers who had no such conflicts.
Given that most drug patents are for such things as size of pill, dosage, uses or manufacturing process- I submit that the "research and Innovation" argument is largely smoke and mirrors.
Edited by Redman 4/23/2014 15:51
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interesting read on health care cost
