I wish there was more study and awareness of the economic idiocy and need for regulation to resolve it, too.
In the UK, the NHS (national health service) cannot afford to treat everyone with certain life-saving drugs because those drugs are too expensive, so they don't, or do so only for a few people.
The drug companies lobby the NHS to include those drugs, and the NHS refuses because the money is better spent on cheaper treatments for more people. Some newspapers and some people side with the drug companies.
Those drug companies justify high prices due to the cost of research, trials and so on, and the patents enable them to maintain the prices.
To be fair, the cost of research etc. is high, and investing in the next drug is needed.
The stupid, awful paradox though, is that if the NHS enforced a lower price, by having the power to override company patents and threaten to make them generically (but only if the company does not agree to sell them at that price itself), then the companies involved could be guaranteed a higher profit for helping more people, while reducing the cost of treatment and care to the NHS.
[All prices in UK pounds - Slashdot does not handle the £ sign properly.]
It's quite simple: Let X be the cost of R&D to the company. Let HP be the high price per person, say 20,000, that the company chooses currently. Let's say 10,000 people choose to use the drug privately. (Revenue = 200 million). Let's say the company believes that strategy makes it's R&D sustainable for future developments. Let's say the marginal cost of production is HP/200 = 100 - after all they say it's dominated by the cost of R&D. (Production cost = 1 million, leaving 199 million for R&D and profits).
Clearly if the NHS agrees to take 1,000,000 person's worth of the drug while enforcing a far lower price of LP = HP/100 = 299 (very affordable per person), then the company will make exactly the same profit, and that's not counting the benefit of scaling up production.
If the NFS takes 1,000,000 person's worth while enforcing a price of 498 (still very affordable compared with 20,000), the company will make guaranteed at least twice the profit, at the same time as helping 100 times as many people.
(* - It's "at least twice" because it's between two and infinity times the profit, depending on the cost of R&D which is somewhere between zero and 199 million, established earlier).
Now will someone explain to me why helping 100 times as many people, while making more profit and/or doing more research, doing more business, with guaranteed long-term business, getting a better reputation and becoming more well known, and yes the individual reps, executives and shareholders can all reap rewards... Why is this something the drug companies negotiate against??!
Simple greed cannot explain it, because everyone in the company stands to benefit personally in the scenario where drugs are cheaper and given to more people, if done properly.
I believe the scenario we're currently seeing is not a result of "evil" corporations and/or individuals in them, nor a result of rational collective greed, but instead is a result of systemic idiocy...