Showing posts with label drug prices. Show all posts
Showing posts with label drug prices. Show all posts

Sunday, June 25, 2017

Health Care Debate Exposed as a Fraud, Dems and Reps Just United to do Big Pharma Bidding

health


The circus sideshow of health care politics is providing yet another smokescreen for the real agenda of the corporate 2-party dictatorship. Contrary to the “different visions for America” portrayed by MSM talking heads, Democrats and Republicans vigorously agree on a fundamental principle: Big Pharma will continue to rake Americans over the coals, with the help of federal government.


The health care “debate” has been portrayed as Republicans and Democrats valiantly fighting for the interest of American citizens. But as Ron Paul points out, the actual difference amounts to slightly different degrees of government control over health care, all of it stifling free market solutions and driving up costs.



Exhibit A is the recent move by Democrats and Republicans alike to ban the importation of prescription drugs from other countries such as Canada. While the American Health Care Act takes all the headlines, Congress is quietly passing the FDA Reauthorization Act of 2017—the framework of the Big Pharma protectionist racket.


As Rolling Stone reports, only a few weeks ago Democrats and Republicans came together to defeat an amendment that “would have allowed for importation of drugs from FDA-approved facilities in Canada.” Senators who supported importation in January suddenly reversed their position, voting no when it seemed the amendment could actually pass. As expected, “no” votes came from senators who receiver copious amounts of money from the pharma lobby.


Every time a lawmaker is pressed on why they vote to deny Americans the ability to get cheaper prescription drugs—a simple free-market solution to outrageously high American drug prices—the lawmakers play the bogus “safety” card. Without providing a fact-based rationale, they simply suggest that we can’t “ensure foreign drugs meet American safety standards.”




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The reality is that lots of drugs and drug ingredients are imported from other countries, but only the pharmaceutical industry is allowed to do it, while pharmacists and consumers are banned.



“In fact, an astonishing 40 percent of all pharmaceuticals sold in the United States are already imported, as are 80 percent of the chemical ingredients. These imported drugs and drug ingredients arrive by way of more than 300,000 foreign food and drug manufacturing facilities that are regularly certified as safe by the FDA.


These drugs come from manufacturing facilities not just in Canada but across the globe, from the first world to the third, sometimes using the same kind of degraded and underpaid labor forces we bemoan in other industries.”



It doesn’t take much inspection to discover the blatant, cruel way that Congress protects Big Pharma. President Trump is on board, too. Campaign promises to bring down drug prices for Americans have evaporated, as industry lobbyists have filled his administration. Sure enough, in mid-June it was revealed that the “White House task force [on drug pricing] echoes pharma proposals.”


That’s not where it ends, though. The FDA Reauthorization Act is also known as the “user fee” bill because this is where Big Pharma pays FDA for the privilege of fleecing the masses. According to Stat News, the bill “spells out how much branded and generic drug companies and medical device manufacturers pay to support their product reviews at the FDA.”


Several amendments in the “user fee” bill opposed by Big Pharma were shot down, including drug importation, one that would have “kept branded manufacturers from using certain strategies to delay generic drug launches” and another that would “encourage pediatric studies in cancer drugs.”




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While federal government gladly intervenes in the functioning of the health care market, lawmakers continually prohibit federal and state governments from negotiating lower prices for bulk purchases. Whatever price the industry wishes for its patented products, it gets.


Hospitals, too, are prevented from getting discount drug prices at the behest of Big Pharma.



“Republicans on the House Energy and Commerce Committee, for example, used a recent oversight letter to echo the pharmaceutical industry’s longtime concerns with a controversial drug discount program that largely benefits hospitals. That inquiry may lead to a congressional hearing — one likely to be far better for pharmaceutical companies than hospitals, Republican committee leaders told STAT.”



Government has become expert at protecting the financial interests of various industries while pretending to “debate” over the best interests of Americans. This protectionist racket comes at the expense of human health and lives.


The issue was underscored last year when the price for a life-saving injection for children called the EpiPen was hiked to $630, causing a public furor. Other outrageous examples include pills that cost $1,000 in America but only $4 in India.


The public is well aware they are being fleeced, as 77 percent of survey respondents say drug prices are “unreasonable” and 71 percent favor the importation of drugs from Canada.


But public opinion and free market solutions have no place in a system where Big Pharma lobbyists have lawmakers in their pockets. PhRMA (Pharmaceutical Research and Manufacturers of America) spent $7.9 million in the first three months of 2017, deploying an army of lobbyists and outside firms to Capitol Hill, while individual pharma companies spent $20 million during the same period.




That spending doesn’t count campaign donations, either. The website OpenSecrets, maintained by the Center for Responsive Politics, estimates the industry gave about $27.9 million to candidates on both sides of the aisle during the 2016 cycle.”



In the coming days we will be inundated with partisan nonsense over Obamacare and Obamacare 2.0, while the real scheme orchestrated by the corporatocracy is already set in motion.

Friday, April 14, 2017

Leaked Email Shows Big Pharma Conspired to Destroy Cancer Medicine for 4,000% Profit Increase

cancer



Those who follow the scandals of the pharmaceutical industry closely, and who have a knack for understanding their economics via the state-created monopolies granted to these companies, know the power these most unscrupulous companies often wield. We’ve seen companies use the power of the state to grant themselves monopolies on decades-old drugs, and, in turn, spike the prices to astronomical levels. However, we’ve never heard of an instance of pharmaceutical companies deliberately destroying life-saving products to force the state to raise the price of its drugs — until now.


Cancer drugs and their makers are often surrounded by controversy and conspiracy theory. However, they remain in high demand because people rely on them during their battles with cancer. This high demand, over the years, has created a higher supply and by a function of the market — even though it is a state controlled market — resulted in a lower price.


This natural function of the market apparently infuriated one of the world’s leading pharmaceutical companies. So, as appears to be the norm in the pharma industry, they took unethical and illegal action to change it.



According to a scathing report out of the London Times, who recovered leaked internal emails from Aspen Pharmacare, corruption is the norm and is even celebrated.


As the Independent reports:



Leaked internal emails appear to show employees at one of the world’s leading pharmaceutical companies calling for “celebration” over price hikes of cancer drugs, an investigation has revealed.



Staff at Aspen Pharmacare reportedly plotted to destroy stocks of life-saving medicines during a price dispute with the Spanish health service in 2014.




After purchasing five different cancer drugs from British firm GlaxoSmithKline (GSK), the company tried to sell the medicines in Europe for up to 40 times their previous price, reported The Times.



The price of Busulfan, a drug used to treat leukemia, rose from £5.20 to £65.22 in England and Wales after this move. Other drugs for fighting cancer quickly skyrocketed as well.



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What do you do if your unscrupulous business practice of destroying product to manipulate the price of life-saving medicine pays off? Well, you celebrate, of course.


In a confidential email published by The Times, an Aspen employee appeared to write: “We’ve signed new reimbursement and price agreement successfully: price increases are basically on line with European target prices (Leukeran, a bit higher!)… Let’s celebrate!”


As the Independent reports:



According to The Times’s investigation, the company said it would stop supplying Italy with the drugs in October 2013 if authorities did not agree to price rises of up to 2,100 per cent in three months.



This all-powerful pharma company was essentially caught holding the government hostage in an unethical ploy to increase their bottom line.


Naturally, they were held accountable and those who facilitated this fraud were brought to task, right? Wrong.


A Department of Health spokesperson told the Independent that they are simply proposing more laws to “take action against excessive price rises on unbranded generic medicines.”


“No pharmaceutical company should exploit the NHS,” they said, reported MailOnline.


“We are working closely with the Competition and Markets Authority on unwarranted price rises of unbranded generic medicines, and where companies have breached competition law, we will seek damages and invest that money in the NHS.”


Sadly, these measures will likely be in vain.


As the Free Thought Project reported last year, Aaron Kesselheim, an associate professor of medicine at Harvard Medical School was the co-author of paradigm-shattering research on drug prices, which led to the Journal of the American Medical Association officially recognizing why drug prices skyrocket in America. Big pharma is granted a monopoly by the state which effectively eliminates their competition and allows them to charge any price they want — so they do.



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The paper, published on August 23, The High Cost of Prescription Drugs in the United States: Origins and Prospects for Reform, set out to  “review the origins and effects of high drug prices in the US market and to consider policy options that could contain the cost of prescription drugs.”


The companies who make these drugs are not beholden to any state, which makes this study applicable to the Aspen case as well.


What the paper’s authors, Harvard Medical School doctors Aaron Kesselheim and Jerry Avorn, and jurist Ameet Sarpatwari, found and subsequently admitted, shatters the very assertion that government regulation in the market is needed to keep medical care costs low. In fact, their findings were quite to the contrary.


According to the paper:


“The most important factor that allows manufacturers to set high drug prices is market exclusivity, protected by monopoly rights awarded upon Food and Drug Administration approval and by patents.”


Imagine that.


It seems Aspen also knows this as well, and has, like so many companies before them, chosen to game the system.

Friday, November 11, 2016

We Finally Know Why Americans Spend More on Prescription Drugs Than Other Nations

November 11, 2016   |   Alice Salles




(ANTIMEDIA) Last week, Vermont Senator Bernie Sanders sent a letter to U.S. Attorney General Loretta Lynch and Edith Ramirez, chair of the Federal Trade Commission (FTC), requesting that the Department of Justice (DOJ) and the FTC look into some makers of prescription drugs and how they price insulin.


Sanders and Rep. Elijah Cummings (D-MD) wrote that though the original insulin patent expired 75 years ago, “three drugmakers who make different versions of insulin have continuously raised prices.



In “numerous instances,” the letter continued, “price increases have reportedly mirrored one another precisely.”


Citing concerns over rising insulin prices and their continued impact on federal spending, the two Democrats accused the companies of taking part in “anti-competitive” conduct and urged the DOJ to investigate. The companies accused of colluding to inflate the price insulin are Eli Lilly, Merck & Co., and Sanofi.


Sanders’ theory that the companies are coordinating to ensure insulin prices remain high across the board partly explains the increasing prices. But a study recently published by the Journal of the American Medical Association(JAMA) shows the high cost of prescription drugs might be caused primarily by government granted monopolies.


According to the paper’s findings, researchers learned that manufacturers are allowed to set high drug prices due to market exclusivity, which is “protected by monopoly rights awarded upon Food and Drug Administration [or FDA] approval and by patents.” This is a finding that coincides with the assessment of many Austrian economists, who often argue the FDA causes “death and suffering” when it keeps drugs off the market due to heavy regulations.



In the United States, individuals spend more on prescription drugs than those in all other countries. The JAMA study noted that in 2013, “per capita spending on prescription drugs was $858,” a much higher cost to consumers than those in “19 other industrialized nations.” In those countries, people spent roughly $400 on prescription drugs. And with prices for prescription drugs in the U.S. jumping more than 10 percent in 2015, things are only getting worse for Americans.


Recently, former presidential contender and congressman Ron Paul wrote that “[m]onopolies and cartels are creations of government, not markets.” If the JAMA-published study on the high costs of prescription drugs arrived at the right conclusions, Paul’s explanation seems to point out a reason why.



Government taxes and regulations,” the retired physician said, “are effective means of limiting competition in an industry.” When large corporations, like the three insulin makers Sen. Sanders is urging the DOJ to investigate, want to eliminate competition, they go to agencies like the FDA.


Since “[l]arge companies can afford the costs of complying with government regulations,” Paul added, smaller competitors are crushed by the high costs of doing business. What’s left? A small group of powerful entities that are ready to do anything to stay afloat. They might even collaborate with one another — as Sanders implies they have — after pushing all other competitors out of the picture with the aid of the FDA’s protectionist policies. After all, Paul explains, “[b]ig business can also afford to hire lobbyists to ensure that new laws and regulations favor big business.”


Examining the lobbying practices of Sanders’ three offenders, we find that Eli Lilly spent $5,470,000 on lobbying efforts in 2016 alone. Merck & Co. went beyond that, spending $5,500,000 on lobbying in 2016. Sanofi isn’t far behind, either; the company has spent $4,390,000 so far in 2016.


In the study published by JAMA, researchers concluded that the “approach the United States has taken to granting government-protected monopolies to drug manufacturers, combined with coverage requirements imposed on government-funded drug benefits” are pushing the prices up, creating an artificial scarcity that hurts those who cannot afford the life-saving drugs they require due to conditions such as diabetes.


Instead of more regulation, the solution is to allow companies to operate without being picked as winners by agencies like the FDA.


Any businesses that charge high prices or offer substandard products” in a market environment free from government intervention, Paul wrote, “will soon face competition from businesses offering consumers lower prices and/or higher quality.” To put an end to high prices for prescription drugs, then, we must first put an end to monopoly-creating schemes — and yes, that includes terminating agencies like the FDA.



This article (We Finally Know Why Americans Spend More on Prescription Drugs Than Other Nations) is free and open source. You have permission to republish this article under a Creative Commons license with attribution to Alice Salles and theAntiMedia.org. Anti-Media Radio airs weeknights at 11 pm Eastern/8 pm Pacific. If you spot a typo, please email the error and name of the article to edits@theantimedia.org.