Replies to post #208013 on Biotech Values

[vinmantoo]

Moving ahead, Trump said lowering drug prices is central to lowering health costs nationally — and will make it a priority for him as he uses his bully pulpit to shape policy.

Trump is misusing the term "bully" pulpit. Teddy Roosevelt meant bully pulpit as a great platform to advocate issues. Trump means to literally bully companies as well as people.

[Jonathan Robinson]

Do you think Trump knows Medicaid already gets 23% off?

I just went through lots of sites and still come away confused.

It appears US govt spending near $120 B with $30 billion discounted 23-24%. I assume the other $90 B is Part D with some part B. This appears low vs. some other data sets but close enough. Medicaid is like $20 of the $30 B for those who want to know. Total US spend is $400B or so before rebates/discounts of $100B netting about $300B. Global spend is $800B.

Couple of questions pop out:

1. We are talking about maybe losing $20-40B in govt sales?
2. Is main fear contagion to $300MM gross other sales in US?
3. Considering discounts of $100B, where do those go? Does this mitigate pressure a bit?
4. Do companies respond by charging more elsewhere?
5. With many prices 5x Canada, why is US drug spend ONLY 40% more per person? (Generics?)
6. How muchof high US spending is excess US drug spend pricing vs. usage?
7. US heathcare is around 3 trillion (17-18% of GDP). US pharma spens is $300 Mm, maybe a bit more. Tgat us the magical 10% I always see. How is pharma the whole problem then?
8. I have seen estimates of oharma spend up to 15% of US healthcare. How? It does not jibe with numbers unless pre-discounts.

[natvik]

Seems a bit of a contradiction to me; bully companies to reduce the cost of drugs - then bully them to make more of the drugs here which will likely make them more expensive.