Big Pharma collusion

[wufan]

It keeps coming up that Big Pharma colluding with government over the Covid vaccine. I just haven’t seen evidence that big pharma is the problem here. There are many collusion issues that pharma has, but to appropriately criticize, it’s important to call out where the collusion is actually happening. A thread:

[wufan]

The number one way that gov/pharma collusion works is through patent infringement. Our laws make it extremely profitable to do research that leads to break through a that leads to sales. Certainly this can be considered a good thing, but once the patent runs out and generics are reverse engineered, tricky and non-essential chemistry and law suits delay the approval of new drugs. You see, the biosimilars and generics must meet the same specifications. By adding a hydroxyl or alcohol group to a molecule, specs can be dramatically shifted, with no gain in efficacy, yet the generics market will spend billions trying to replicate the process.

[wufan]

Labeling laws. Labels have strict legal requirements. Lawsuits can last years over what a label contains and what it doesn’t. How it’s named and copyright infringement keeps the top players on top and the Johnny come latelys out of the mix for years.

[wufan]

Medically necessary and “orphan” drugs. These are drugs that pharmaceuticals are not allowed to sell at a profit. They cute rare illnesses and keep people alive in emergency situations. In order to keep them affordable, the government restricts their sales and pharma sells them at a loss. In order to compensate the pharma companies and indent abuse them to sell them, the company will get perks like early approval or exclusivity rights. Lobbying governments to make your new patented blood pressure medicine the standard of care and gaining subsidies for these “miracle drugs” is often the pay off.

[Kung Wu]

In order to keep them affordable, the government restricts their sales and pharma sells them at a loss. In order to compensate the pharma companies and [incentivize] them to sell them, the company will get perks like early approval or exclusivity rights.

I'm no businessman, but if I am ever forced to sell something at a loss, the last thing I want is exclusivity rights on it. :)

[wufan]

I'm no businessman, but if I am ever forced to sell something at a loss, the last thing I want is exclusivity rights on it. :)

The exclusivity rights come on OTHER drugs…the marginal profits on that drug become high earners.

[Kung Wu]

The exclusivity rights come on OTHER drugs…the marginal profits on that drug become high earners.

I figured. :)