Slashdot Mirror
AIDS Drug Patent Revoked In US
eldavojohn writes "Doctors Without Borders is reporting that four patents for tenofovir disoproxil fumarate, a key AIDS/HIV drug, have been revoked on grounds of prior art. This is potentially good news for India & Brazil who need this drug to be cheap; if the US action leads to the patent being rejected in these countries, competition could drastically lower prices. But the ruling bad news for Gilead Sciences. The company has vowed to appeal. We discussed this drug before."
Big Pharma is corrupt as all heck. They don't "research new drugs," they research how to make minor changes to existing drugs so they can re-patient. They just had an ex-industry insider (from relatively high in the ranks) condemn them to our congressmen.
Don't get me started on how much of the "research" money comes from the government.
I'll willing to accept that there might be a perfectly rational, moral reason the drugs are priced the way they are... but I haven't heard it yet.
Just -1, Troll talking to another.
The research is largely proving that the drugs are effective and safe. This costs good money, and few will do it it there's not something in it for them.
I'm not defending big pharma or any company in particular.
A thing to remember though is that the average cost of developing a new drug easily runs into hundreds of millions of dollars and that they need to make that back to stay in business.
This is why they struggle so hard, quote: " In 2001, the ten American drug companies in the Fortune 500 list (not quite the same as the top ten worldwide, but their profit margins are much the same) ranked far above all other American industries in average net return, whether as a percentage of sales (18.5 percent), of assets (16.3 percent), or of shareholders' equity (33.2 percent). These are astonishing margins. For comparison, the median net return for all other industries in the Fortune 500 was only 3.3 percent of sales. Commercial banking, itself no slouch as an aggressive industry with many friends in high places, was a distant second, at 13.5 percent of sales." (emphasis mine)
CC.
TaijiQuan (Huang, 5 loosenings)
That's ridiculous. Drugs are not priced based on market forces. In fact, there are no market forces. Assuming you have insurance, then the drug's cost to you is not the real cost - nor is the "market" price related to the cost to the company. Amgen and Roche are in a battle over dialysis drugs. With kickbacks, reimbursement rates, and other strange financial dealings, the prices become complicated. Look at Genentech too. Their main competitor to Lucentis, their drug for wet age-related macular degeneration, is Avastin, another one of their drugs! Yet Lucentis costs about 40 times as much as Avastin. That has nothing to do with the market. So what do they do? They try to prevent ophthalmologists from purchasing Avastin to use as treatment for AMD, by halting sales to compounding pharmacies.
The barrier to entry is also extremely high (though this might be necessary to ensure there aren't fakes). As a patient, you have little choice. Do you honestly shop around for the cheapest doctors when it comes time for surgery? You don't have much say in what the doctor will order for you, and you have essentially no say in who your anesthesiologist will be.
The Canadian provincial health plans don't cover pharmaceuticals.
Sorry, US citizens are being gouged.