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12.8.2004
Drug Re-importation Moves Closer
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Respected political analyst Mort Kondracke writes that the U.S. is going down the road to allowing reimportation of drugs, even though:
In reality, despite overwhelming support in polls, importation is a terrible idea. Drug costs are lower in other countries because they impose price controls, so importation amounts to imposing price controls in the United States.
Foreign countries contribute little or nothing to the huge costs of researching new drugs — estimated to be $800 million per product — and they produce few medical breakthroughs. Price controls would slow down medical progress here, too.
And Canada, the first country of choice for importation, can’t handle a major upsurge in demand from the United States. Its drug market is only 10 percent the size of ours, so prices there would skyrocket if millions of Americans started buying. Canada’s health minister has said Canada doesn’t want to be America’s drugstore.
So, if mass imports are to be permitted, they would have to cover Europe and Latin America as sources. The U.S. Food and Drug Administration conceivably could monitor warehouses in a few nations, but the cost of doing so all over the world would be prohibitive. Adulterated and fake products — or poisons planted by terrorists — would inevitably find their way into the United States.
Regardless of logic or danger, however, there’s a tidal wave of popular support for drug importation, driven partly by high U.S. drug prices and falling respect for the drug industry. He goes on to discuss how the industry might regain the moral high ground, something it must do, for all of our sakes. if it is to fend off the forces of grasshoppery. (As in ants and grasshoppers.)
Kondracke speaks with particular authority on health care issues, because his involvement in his wife's struggle with Parkinson's Disease gave him an education on both drug science and politics.
A fundamental problem is that the drug industry, like any industry with high fixed costs and low marginal costs, is a prime target for political demogoguery -- "that pill costs only ten cents to make!" Since this description applies to all intellectual property-based industries, they should all be watching this real-life drama quite closely.
posted by James DeLong : 12/8/2004 08:22:29 AM
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