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12.8.2004
 Drug Re-importation Moves Closer 
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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Home Page
12.8.2004
 Drug Re-importation Moves Closer 
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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IPcentral WebLog
Blog Main
Recent Posts
  The Internet Just Keeps Rollin' Along
Snocap and P2P Liability
Computers and Labor
Pew Report
IP Watch
More and More Open Source, Perhaps Too Much
Sun and Open Source
Games as an Art Form
Kazaa Gossip
David Post on Larry Lessig
Archives by Month
  December 2003
January 2004
February 2004
March 2004
April 2004
May 2004
June 2004
July 2004
August 2004
September 2004
October 2004
November 2004
December 2004
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  PFF Blog
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