The media give the impression that drug prices are too high in the U.S., compared to prices, for example, in Europe.
Prices for the same pharmaceuticals are certainly much lower overseas. But the reason is simple. Pharmaceutical companies are blackmailed into selling there below true cost.
To do that with the knowledge of the governments holding guns to their heads, they must raise prices in the U.S, to make their profit. No profit, no business. And if there is no business, no drugs can be produced.
A company spends as much as a billion dollars to find and research a new drug before it’s on the market.
Think about this the next tine you get an economics lesson from a politician on the enormous profits drug companies make. Furthermore, if they are so profitable, why are not all the geniuses on Wall Street falling over each other buying drug stocks?
You will notice that pharmaceutical securities are not investor favorites. They are merely left-leaning politician scapegoats.
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