Message 00537 [Homepage] [Navigation]
Thread: oxenT00475 Message: 9/30 L8 [In index]
[First in Thread] [Last in Thread] [Date Next] [Date Prev]
[Next in Thread] [Prev in Thread] [Next Thread] [Prev Thread]

[ox-en] Value of medicine (was: Re: Value of software)



Dear list!

Last week (13 days ago) Graham Seaman wrote:
On Mon, 3 Jun 2002, Timm Murray wrote:
On Monday 03 June 2002 12:23, Graham Seaman wrote:
We need to find a chemist. ;-)
Since a) a bottle of aspirins costs me less than it does to download
mozilla, and b) people manage to create labs to produce ecstacy,
amphetamines, LSD etc in their kitchens with almost no capital, I suspect
in general, very little - the interesting thing would be, are there
SOME medicines which are genuinely expensive to make, or none at all?

Perhaps a catlyst hasn't yet been discovered, so it takes years for the proper
reactions to take place.  Perhaps a reaction will only take place under very
strict conditions (like absolute darkness at 130 kelvins, no more and no
less).  Perhaps it needs a chemical which is very hard to come by.  Any one
of these could make a medicine very expensive.

Are either of the first two common in creating medicines?
And in the 3rd case, are there actually 'rare chemicals'? Meaning I
suppose firstly are there medicinal chemicals based on rare elements,
and secondly, do synthesis costs always come down once you have volume?

(I have no idea at all about the answers to any of that...)

On the German list we have Barbara who is rather knowledgeable in this
field. I asked her to prepare some information which she did. Her full
mail with some more (German) links is available at

	http://www.oekonux.de/liste/archive/msg04958.html

I translated some key paragraphs below.


						Mit Freien Grüßen

						Stefan

--- 8< --- 8< --- 8< --- 8< --- 8< --- 8< --- 8< --- 8< --- 8< --- 8< ---

Hello Stefan,

I don't know how quickly you need an answer to the simple question for
the production costs of a medicine - what I learned meanwhile is just
that there seems to be no more difficult question ;) . ...

...

It is clear that the demand for transparency in prices is high on a
national basis as well as on a international basis and its over and
over - unsuccessfully - demanded.

-------------------------------------------------------------------------------

Short result of the cornerstones of a price calculation:

Expenses:

- Input substances + plant + costs for personal etc.

- Research & development

- Licenses and fees such as concession including studies (regulatory
  overhead)

- Marketing

- Distribution

=> For producer delivery price

= these costs

+ Shareholder value :)

+ Which share does the medical system of the respective country carry?

=> Who does really pay? Distribution of public resources / private
   resources / regulatory policy of the respective medical system of
   the country

------------------------------------------------------------------------------

The "Verband forschender Arzneimittelhersteller (VfA)" [federation of
the researching medicine producers] amounts the expenses for research
& development to 14-16.5% of the whole turnover, investment to about
5.5% from which 20% flow to research & development - but a matter of
fact seems to be, that the expenses for marketing are regularly twice
as high as the expenses for research (...).

...

http://www.cptech.org/ip/health/
======================

Obviously here is all the good, beautiful and true gathered together.
This is the site of James Love who was on the Wizards of OS 2 and also
otherwise is a name which you always stumble over. ...

Without fail from there you get to

http://www.genericsnow.org
http://www.healthgap.org/
http://www.accessmed-msf.org/

...

http://www.cipla.com/

is the Indian producer of generic drugs, which offers the HIV triple
therapy for 350$ per patient per year - in the USA is costs according
to Cipla 10-15000$. ...

The trick of the success of Cipla probably is, that in India patents
are valid only on ways of production but not on substances as such
(until 2003 the law should be aligned to the WTO standards, when India
ratifies the intellectual property treaty of the WTO - did it already?).

So Cipla produces substances protected by patents in the West by a
different method. ...

...

The remaining sources are very much aimed at the German market and the
insurance situation here.

...

------- End of Forwarded Message


________________________________
Web-Site: http://www.oekonux.de/
Organisation: projekt oekonux.de


_______________________
http://www.oekonux.org/



Thread: oxenT00475 Message: 9/30 L8 [In index]
Message 00537 [Homepage] [Navigation]