High Sierra Topix

"Big pharma" is a force of nature.

A greater force than most can even imagine.

If you wanna have some real fun, just google

"big pharma and homeland security act"

or google this

"ely lily thimerosal"

Have fun.

quentinc wrote:Actually, the drug companies wouldn't claim the cost of regulation is the reason (it's a very small amount compared to what they charge). They would claim it's needed to recoup their research & development costs ...

True.

The drug companies try hundreds, if not thousands of compounds, before they find one that shows promise. They file for a patent, which is good for 17 years. Then they start testing it. Once they have figured out efficacy, dosages, etc, they petition the FDA to begin clinical trials. The trials can take many years and cost millions of dollars. If the trials are successful, then they petition the FDA for approval, and there is no guarantee the FDA will approve. They may reject entirely, or demand additional trials. Meanwhile the patent time limit is still in effect. The companies have already spent tens to hundreds of millions of dollars, there is maybe 5-6 years left on the patent, and they have not yet sold a single dose. Once the patent expires, any company can make a generic version of the drug without having to pay a penny to the original company for all the R&D. So the original company must recover all the costs within the few years left on the patent. How about starting the patent clock as soon as the FDA approves it? that would give the company more time to recover R&D so the drug could be offered at a lower cost.

Johnson and Johnson has an anesthetic ( I cannot remember the name) approved for in-utero surgery on a fetus. Regular anesthetics cannot be used because of the danger to the baby. There is still a risk to the baby, and if the baby is born with any defect or health problem at all, you can be sure J&J will be sued whether the anesthetic had anything to do with the problem at all. This anesthetic is incredibly expensive, and 99.5% of the cost is litigation reserve in anticipation they will be sued sometime over this anesthetic. Canada has different laws regarding suing drug manufacturers, so the same anesthetic is a fraction of the cost in Canada.

I don't know if accounting principles have changed, but it used to be that R&D was expensed when incurred. Judging from the lack of intangible assets (zero) on Ely Lilly & Co. and Merck & Co. balance sheets, but an R & D expense roughly 16 to 20% of operational revenue, I'd say their R & D costs are expensed regardless of whether anything comes of it or not. Furthermore, I'd be inclined to say that their marketing costs are small compared to R & D. R & D is roughly 65% of marketing and general and administrative expense combined and roughly the same as the cost of product sold.

Now 1 year later--still hiking, cross country skiing, volunteering, chasing my wife around the house (and actually catching her now that she has a foot in a cast!). Planning 6 weeks in the Sierra, one week in the Eagle Cap Wilderness and 10 days in Boundary waters--no reason to slow down!

Mike

Oh yeah out of pocket expenses were greater for my wifes outpatient foot surgery because the surgicenter was a Tier 2 facility rather than Tier 1 (our local hospital) than for my stent.

I am glad you dodged the bullet! I am one of those aging members(57), and I am trying to take care of myself with diet, excercise, and backpacking, but aging is a tough foe.

I'm 47 (in 2013) with health getting better with age. The one thing that was bothering me has cleared up (slight sharp pain in hip once or twice a day maybe from pinched nerve). Someone said keep the stress level down; another person said he'll be angry and stressed till he dies!!! I think the key is keeping the stress level down. *** What seems to preserve my health is (1.) working around public driving a bus and getting exposed to all sorts of stuff -- good immune system; (2.) lots of sleep; (3.) less meat; (4.) hiking; and (5.) more introverted and comfortable being alone much of the time resulting in less stress due to "adult child of alcoholics" ah "syndrome" (my Dad died a week before my 18th birthday leaving me somewhat un-socialized). I would add (6.) steady job for past 10 years with high job satisfaction and the easier my job gets the less work-related issues I drag home with me at the end of the workday. Only a few grey hairs. Over the past 5 years even the yearly cold has either shortened in duration or disappeared completely. *** Mark Sisson has a book called "Primal Blueprint" that I just discovered that is similar to my experiences. We're lucky to have a love for the High Sierras since the author recommends slow, steady exercise, and those mountains keep calling us back every year!!! Lastly, Norman Clyde wrote that it's amazing how much one can do in the mountains with: enough food, and, enough sleep.