patrick.net

B...b but that might leave your rent seeking son out of job at Genentech

Much of the public outrage accompanying high drug prices has come in response to companies that raise the prices of old drugs, seemingly only to increase their profits.

That's the entire purpose of business in capitalism. Once again, capitalism does not work for necessities. This is an abject failure.

Dan8267 says

That's the entire purpose of business in capitalism. Once again, capitalism does not work for necessities. This is an abject failure.

Of course it is the entire purpose of capitalism, except that capitalism has a clear mechanism for keeping prices low: this is called competition.

Since there is no competition for drugs under exclusive patents, there is no limit to the price increase.

In other words this has nothing to do with capitalism per say.
It's all about the laws that were carefully written specifically to give big payouts to drug companies.

So you mean to say there is nothing wrong with drug prices and drug companies are barely breaking even?

Incidentally PFE also has a dividend payout ratio of 118%, MRK 94%.
Great funding of new research.

MMR says

Genentech

Did Novartis fire him already?

Dan8267 says

Much of the public outrage accompanying high drug prices has come in response to companies that raise the prices of old drugs, seemingly only to increase their profits.

That's the entire purpose of business in capitalism. Once again, capitalism does not work for necessities.

It works most of the time for many necessities, including food, clothing, and shelter. America does not have capitalism in medicine: we have lemon socialism, privatizing profits while socializing costs (including losses). Outrageous increases in the prices of old drugs are only possible because of anticompetitive regulation and collusion, which should be prosecuted instead of mandated. If all drugs were sold OTC in competition with each other, you'd see lower prices and higher quality.