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by tw04 3593 days ago
For the same reason there were no competitors to daraprim before Martin Shkreli decided to be a complete ja. When the price is low enough that there's little profit to be had, nobody bothers competing because it's not worth the time, money, and effort to get FDA approval. When the price gets jacked up like that, you will find generics pop up quickly. The problem is the window between the price hike and when generics pop up can sometimes be years due to needing to get FDA approval.

In this case there was a competitor, but they recently had their product pulled from the market in an FDA recall. So Mylan decided: why not raise the price 600% (and rising) when it's a drug people HAVE to have.

Capitalism in action baby. Let's deregulate EVERYTHING!
2 comments
noonespecial 3593 days ago
If EVERYTHING were deregulated, the time, money, and effort to get FDA approval would also vanish along with this particular problem. Would other worse problems appear in its place? Maybe. But calling foul on free-market capitalism in the very most regulated market in the US is a bit disingenuous.
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refurb 3593 days ago
Hmmm... from your description, it sounds like the market is working, just not fast enough for everyone.

It's not worth it for a company to develop their own Epi-pen since profits are so low. Eventually enough drop out that one manufacturer raises the price. Significant profits result which attracts other competitors. Prices drop.

Would you just prefer the gov't to step in and set the price? What happens if companies decide it's not worth the effort? Have the gov't force them to produce the product?

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toomuchtodo 3593 days ago
> Would you just prefer the gov't to step in and set the price? What happens if companies decide it's not worth the effort? Have the gov't force them to produce the product?

Cut out the private market and have the government manufacture it directly.

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refurb 3593 days ago
Can you give me some examples where the gov't has come in as a manufacturer and it's actually gone well?
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John23832 3592 days ago
They've done pretty well in the power sector. One could argue that most power (electric) companies are really just state run shells.

https://en.wikipedia.org/wiki/Hoover_Dam

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toomuchtodo 3592 days ago
I don't know of any case in which the US government has attempted to fulfill the role of manufacturer; that does not mean we should not try.
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