Friday, October 9, 2009

The Myth Behind Pharmaceutical Charges

Listen to or read the liberal media and you get the impression that drugs are too high in the U.S.A. because companies are overcharging, compared to their prices, for example, in Europe.

Prices for the same pharmaceuticals are certainly much cheaper overseas. The reason is simple. Pharmaceutical companies are blackmailed into selling them below true cost overseas, under a contract they have been forced to sign.

To do that, and with the full knowledge of the governments holding a gun to their heads, they must raise prices in the U.S, to make their profit.

It’s as simple as that. No profit, no business. No business, no drugs are produced. These days you spend as much as a billion dollars to find and research a new drug before you place it on the market.

Think about this the next tine you get an economics lesson from a liberal on the enormous profits the drug companies make. And if they are so profitable, why are not all the geniuses on Wall Street falling over each other buying drug stocks? If you look, you will notice that pharmaceutical securities are not investor favorites.

But they are left-leaning politician scapegoats.

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