Wednesday, September 30, 2015

BISCUIT AND GRAVY, BACON, AND THE WALL STREET JOURNAL

Linda clearly wants to play on the grass
Christ Church, Oxford University
 
I cannot eat breakfast without something to read.  Well, or someone to talk to, but that is rare these days.  Usually I read the Economist, but owing to the expanding muddle inhabiting my skull  I forgot to renew my subscription.  That lead me to spend $3.00 on a Wall Street Journal  this morning – God help my finances if my new  Economist subscription takes very long to arrive.  (For you liberals muttering that I should have purchased the New York Times instead; it was $4.50.  Remember when you could get a good newspaper for a quarter?  No, of course you don’t.)  But anyway, I found an interesting article in today’s Journal which I wanted to share with you, but the cheapskates won’t let me access it on line unless I subscribe, which I will not do.  The article is framed as an attack on Hillary, but it has some good stuff on the FDA and generic drugs which I will summarize below.
As all of you know, if a drug company dreams up a new drug it must get permission from the Federal Drug Administration to place the drug on the market.  This costs many millions of dollars and sometimes takes a half-dozen years or so.  However, if the drug is approved the company then has exclusive right to manufacture and market it for a set period of time.  When that time is up the drug becomes “generic”, and its price usually falls dramatically.  I thought that becoming generic was automatic, quick and cheap, but I was wrong.  If your wonder drug for growing hair recently has gone off patent and I want to manufacture an identical generic, I must submit something called an Abbreviated New Drug Application to the FDA.  This can cost me between $1 and $5 million!  There are said to be thousands of such drugs waiting approval; on average, four submissions and resubmission are required.  Also, there has been a recent “crackdown “on generic  drug manufactures, which the author of the piece – a medical doctor but also obviously a conservative – views with some skepticism.  The bulk of the piece nit-picks some of Hillary’s pronouncements on drug pricing, but that part can be ignored with no significant loss of value.  Who cares what Hillary thinks, anyway – Biden/Warren looms.
The moral of this story seems to be:  Some regulation is useful, even necessary, but it is easy to get carried away.


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