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by fspeech 3585 days ago
Some of the existing dysfunctional drug market dynamics can be addressed through a break up of the vertical integration: companies can choose to be the R&D/manufacturer in which case they are not allowed to market to doctors/consumers; or they can choose to be a marketer/distributor. Manufacturers must treat marketers non-discriminatorily.

This way we can separate the wheat from the chaff. Truly revolutionary products can still charge high patent-protected prices by their exclusive manufacturers. OTOH marketing driven products with weak perceived advantages won't be able to charge the high prices as they do now. In the Epi-pen case, the patent owner will still be the exclusive manufacturer. But if they raise the price by 400% to all the marketers the marketers may choose to promote other generic products instead.

1 comments

Epipen is a patneted standard. It's akin to patenting HTTP and the pretending we could all switch if we want.
Under my scenario of separation of the marketing and the manufacturing entities, there would be much less incentive to create such a monopolized standard in the first place. The marketers would worry about getting into a jam like this. On the other hand if the invention is truly essential, they would have no choice.