iProceed has supported drug reimportation from Canada (or from wherever else it can be done efficiently) on one basic principle of good business: free markets. Thus, we have been telling the pharmaceutical CEOs to stop whining and asking the government to help them through regulation.
However, Americans who strongly favor lower drug prices, have to understand that there is a price to pay:
However, Americans who strongly favor lower drug prices, have to understand that there is a price to pay:
- Job losses as drug companies find ways to cut costs (R&D offshoring is already happening)
- Move manufacturing to cheaper locations (MedImmune, VaxGen , Lilly, Pfizer and Wyeth, etc. all manufacture outside the US and are increasing their offshore manufacturing) and that would have two implications (1) loss of even more jobs (2) lack of domestic suppliers of drugs, as the case with the latest shortfall in flu vaccine has shown
Once again, the response of the policymakers should not be to make it difficult for drugmakers to move manufacturing offshore. Let the market forces work. If there is demand in America for drugs, someone somewhere will figure out a way to get the drug to American consumers at the best price. It is only when the government interferes too much in the drug markets that problems happen.
Recommended article: Pharma & biotech R&D: Growth opportunities in outsourcing solutions