[benjamoon]

It's about £2,500 ($3,100) per year in the UK if you just buy it online, not subsidised. I don't know how the US massive price hike is justified when the whole western world is buying it from the same supplier (Novo Nordisk in Denmark).

[wmf]

The US market is paying for the R&D while the rest of the world is getting it below cost.

[wjnc]

I think this is mostly true. Perhaps truer still is that the US willingly had rules that massively reduced their market power in negotiations, which in a game of parallel negotiations leads to the obvious price discrimination. You cannot blame big pharma for giving a client willing to pay any price without negotiations what the client wants: high prices.

One counterpoint is that in my country we’ve successfully reduced prices for medicines a lot by strong negotiations in the last decade. We are last in line among western nations for medicines now. Shortages all around.

[mft_]

Almost certainly not below cost.

And the US isn't paying for the R&D (that sounds like a regurgitated line from somewhere?) so much as paying for the pharma company's profits, due to the US's totally screwed-up healthcare system and situation.

[StefanWestfal]

How is it different from the normal market? If I have a product and sell in Germany for 50 USD and Switzerland for 100 USD because that is what people are willing to pay, would you also say that Switzerland pays for R&D while Germany gets it below cost?

[wmf]

Drugs aren't a free market in many countries; Europe is paying less because of government regulations not because people are willing to pay less.

[StefanWestfal]

That is right, but it is a global market where Novo Nordisk can decide to sell in a country or not, so I do not think they would sell below cost. I agree with the point that the US pays disproportionately much for the R&D portion of the cost, though.

[xenospn]

The US is paying for R&D in Denmark?

[wmf]

Yes, it's globalization. Note that customers in the US, not the US government, are the ones paying for it.

[xenospn]

How so?

[bpicolo]

Isn't it made by a Danish company?

[kgwgk]

Prices are higher in US than in Europe - whether the company is from Europe or the US doesn't change that.

[drpotato]

Do you have a source on that claim?

[kgwgk]

https://www.reuters.com/article/idUSKCN0S61KT/

[mchanson]

Probably not.