[pie_flavor]

Once a company in the US has figured out a treatment for eclampsia, Europe can steal this knowledge for free (i.e. price-control them according to cost) while the US company must price-gouge against the manufacturing cost to recoup the R&D costs. This factors heavily into how much healthcare costs in the US (not to be interpreted as 'it's the only reason'); it's the same dynamic as 'world police'. If under-patent drug prices went up in Europe they would go down in America.

[red-iron-pine]

> Once a company in the US has figured out a treatment for eclampsia, Europe can steal this knowledge for free (i.e. price-control them according to cost) while the US company must price-gouge against the manufacturing cost to recoup the R&D costs. This factors heavily into how much healthcare costs in the US (not to be interpreted as 'it's the only reason')

Recouping R&D costs has been disproven time and again. Medical companies spend far more on average on marketing (and lobbying) than on actual R&D.

[lxm]

In theory then a bunch of pharma startups that have nailed their marketing costs should then flood the market with cheap new stuff. Why haven't they?

[peteradio]

What incentive is there to do that? Is there anything preventing them from being gobbled up by current giants?

[lxm]

Being gobbled up at a premium is a reasonable exit strategy.

[peteradio]

Well yea, but OP wondered where are these cheap drugs.

[notmypenguin]

First time I’ve ever heard such a strange story. Do you have any evidence for your sweeping radical claims?

All other evidence I’ve heard of points to the USA being the only major country without public healthcare and price controls in place, but maybe you can blow my mind with facts.

[polski-g]

So you're agreeing with him based on your second paragraph?