Price of cancer drug skyrockets

[jackie hayes]

Link. Registration required, of course.

 

This is some interesting s***. Here's the scheme: Ovation Pharm buys a low demand drug from a major pharm company, then raises the price tenfold. Even though the product is old enough that it's off patent, it's sold to such a small market that no other company is willing to set up a production line. Ovation itself doesn't produce the drug, it just buys the product from the more established company (which already has the production line set up) and marks it up BIG.

 

So Ovation increases the price TENFOLD, and the established company can claim that they aren't setting the price (after they get paid by Ovation for handing over the rights.) Ovation's doing it!

 

What about the market here? I tend to defend free, private markets, but this is one example where I'd like to see the government take on a big role. Anyone disagree? What would be another solution to this scumminess?

[Mplssoxfan]

Link.  Registration required, of course.

 

This is some interesting s***.  Here's the scheme:  Ovation Pharm buys a low demand drug from a major pharm company, then raises the price tenfold.  Even though the product is old enough that it's off patent, it's sold to such a small market that no other company is willing to set up a production line.  Ovation itself doesn't produce the drug, it just buys the product from the more established company (which already has the production line set up) and marks it up BIG.

 

So Ovation increases the price TENFOLD, and the established company can claim that they aren't setting the price (after they get paid by Ovation for handing over the rights.)  Ovation's doing it!

 

What about the market here?  I tend to defend free, private markets, but this is one example where I'd like to see the government take on a big role.  Anyone disagree?  What would be another solution to this scumminess?

 

Cases like this have very little to do with the free market and about 99% to do with greed. Merck was, I'm sure, making a decent profit on Mustargen, and will continue to do so while selling it to Ovation. Ovation will be making unconsionable profits out of the pockets of sick people, and then, if their plans go right, out of the insurers of America.

 

Don't try to tell me that Medical Malpractice reform is the magic bullet when leeches on society like Ovation are in the mix.

[FlaSoxxJim]

Don't try to tell me that Medical Malpractice reform is the magic bullet when leeches on society like Ovation are in the mix.

 

No, but a serious renewal of the national debate on the state of American health care and the lack of access of many people to it can adress this and countless other issues.

[kapkomet]

No, but a serious renewal of the national debate on the state of American health care and the lack of access of many people to it can adress this and countless other issues.

There are so many elements of health care that need addressed, but a "national health care plan" is NOT the answer.

 

I think that the laws that are passed by Congress regulating what private industry does without cutting off research and free-market is better.