Drug Company Secrets Exposed: The Real Reasons We Pay More for Our Rx
For years America has been told that the reason for our high drug prices is to promote a truly innovative market.
In other words, price limitations on drugs would sway the incentive of drug companies to produce new innovative drugs.
After doing some research on this subject, it seems to me that the drug companies are more worried about protecting there existing "money making" drugs rather than creating new innovative ones.
Drug companies claim that the reason for high drug prices is to compensate for the high cost of research and development.
The drug companies allege that the cost of a drug from concept to delivery to the consumer is $800 million.
In the book The Truth About the Drug Companies, the author Dr.
Marcia Angell explains,
"when the industry claims to have spent $26 billion on research and development and ninety-eight drugs are produced, the average pre-tax cost for each drug was, under those assumptions, no greater than $265 million , and the after tax cost are about $175 million. (R&D is tax deductible)"
But this is not the biggest part of the whole sham.
What will really get your attention is the number of innovative drugs actually being produced.
Research and Development is only 11% of sales where as marketing is 36%.
In 2002, seventy-eight new drugs were approved by the FDA.
Of those, only seventeen were deemed by the FDA to have new active ingredients, and only seven were found to be improvements over the older drugs.
On top of that, of the seven drugs found to be an improvement, not one of them came from America.
The truth is, what the drug companies are spending all their time and marketing on is the same drugs we have had for the last 20 years. More than 77 percent of drugs put out by drug companies each year are re-released versions of an old drug with better marketing behind it. Drug companies are more worried about there patents expiring than they are about making innovative drugs.
Patents allow drug companies exclusive rights to charge whatever they want while the patent is active. When the patent expires, other companies can begin to make generics of the formerly patented drug which drives the price down.
So what the drug companies do is use the exact same drug, test it with the FDA for a slightly different use, slap a "new and improved" label on it, switch their marketing to the new product that holds the new patent, and call it a day.
For example, Schering-Plough's patent on its money drug Claritin was about to run out.
So they retested the same drug with the FDA for indoor allergy relief as well as seasonal allergy relief and called it Clarinex.
They then launched a huge promotional campaign to switch users from Claritin to Clarinex because it was an improvement over the existing drug even though it is exactly the same.
It was approved for that use only because they decided to test it for that use; if they would have tested Claritin for indoor allergy use it would have had the same results as Clarinex.
If drug companies are not producing new drugs to help us because they are to busy trying to keep their prices high on existing drugs, then why support them by buying their drugs at unreasonably high prices?
The best place to find medication at discount prices if ePharmacies.com.
ePharmacies.com is a pharmacy resource website that will help you locate and compare the cheapest prices on your prescription medication from foreign sources such as Canada. Visit this Consumer Advocacy website for more information on ordering from online pharmacies.
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Top 5 Overlooked Tax Deductions
Copyright 2006 Kristine McKinley
How many times have you done your taxes, and a week or a month later realized you forgot a deduction?
The tax law is very complicated, so it's easy to miss a deduction or two.
In my experience, these are the top 5 missed deductions.
1. Non-Cash Donations
Did you clean out your closets this year?
Chances are you donated those items to Goodwill or a similar non-profit organization.
The value of donated items (clothing, furniture, etc.) is deductible.
You will need to get a written receipt and assign a value to these items, but the tax savings are worth the effort.
2.
Points on Refinancing
With interest rates so low the past few years, there have been a record-number of houses refinanced.
If you refinanced, you may have paid points to get a lower interest rate.
These points are deductible over the life of the new loan.
...
Tax help > Top 5 Overlooked Tax Deductions
Home-Based Business vs. Second Job -- The Choice is Yours
Many families today rely on two incomes to pay their bills not being able to make ends meet month to month. They face several options to secure that extra income they need, one being obtaining a part-time job and the other a home-based business. It's a decision with advantages and disadvantages to each. I want to provide some suggestions to help you make the right choice. When deciding between a standard second job and a home-based business, it is important to consider the expenses incurred in both.
For those considering a second job, many do not take into account the numerous extra expenses that go along with childcare, clothing, gas, etc. Crown Financial Ministries offers a worksheet online (http://www.crown.org/Tools/mommake.asp ) to help you determine how much you will actually make once these expenses are deducted from your income. By breaking it down and seeing the guideline, you can see just how much extra you really...
Home-Based Business vs. Second Job -- The Choice is Yours
Tax help > Home-Based Business vs. Second Job -- The Choice is Yours
Estate Planning and Insurance Concerns When You Divorce
If you are getting a divorce from your spouse, you have a lot of planning to do.
You will need to name your own beneficiaries, organize your divided assets, and
set up your individual estate. It is important that you meet with a qualified attorney to discuss the specifics
of planning your estate to ensure that your wishes are carried out as you desire. You need to be well versed in the most strategic methods of dividing your joint estate so that you do not end up paying all of the taxes while he or she enjoys the benefits of your assets. I have outlined some important information for you to be aware of when planning
your estate after your divorce.
Please keep in mind that divorces lend themselves
to new structures for individuals. You will want to meet with a qualified attorney
to discuss how to best protect your new estate. Assigning Your Beneficiary
During your marriage, chances are your spouse was the...
Tax help > Estate Planning and Insurance Concerns When You Divorce
Home-Based Business vs. Second Job -- The Choice is Yours
Many families today rely on two incomes to pay their bills not being able to make ends meet month to month. They face several options to secure that extra income they need, one being obtaining a part-time job and the other a home-based business. It's a decision with advantages and disadvantages to each. I want to provide some suggestions to help you make the right choice. When deciding between a standard second job and a home-based business, it is important to consider the expenses incurred in both.
For those considering a second job, many do not take into account the numerous extra expenses that go along with childcare, clothing, gas, etc. Crown Financial Ministries offers a worksheet online (http://www.crown.org/Tools/mommake.asp ) to help you determine how much you will actually make once these expenses are deducted from your income. By breaking it down and seeing the guideline, you can see just how much extra you really...
Home-Based Business vs. Second Job -- The Choice is Yours
Tax help > Home-Based Business vs. Second Job -- The Choice is Yours
Top 5 Overlooked Tax Deductions
Copyright 2006 Kristine McKinley
How many times have you done your taxes, and a week or a month later realized you forgot a deduction?
The tax law is very complicated, so it's easy to miss a deduction or two.
In my experience, these are the top 5 missed deductions.
1. Non-Cash Donations
Did you clean out your closets this year?
Chances are you donated those items to Goodwill or a similar non-profit organization.
The value of donated items (clothing, furniture, etc.) is deductible.
You will need to get a written receipt and assign a value to these items, but the tax savings are worth the effort.
2.
Points on Refinancing
With interest rates so low the past few years, there have been a record-number of houses refinanced.
If you refinanced, you may have paid points to get a lower interest rate.
These points are deductible over the life of the new loan.
...
Tax help > Top 5 Overlooked Tax Deductions
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Tax help Drug Company Secrets Exposed: The Real Reasons We Pay More for Our Rx
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