Hey apljack,
Been a long time! I've mostly been out of investing in biotechs for years (currently own just 2), though I've continued to read this board whenever I can. I learn so much from people like you, Dew, and many others, and am still fascinated with the science behind many drugs despite my lack of investment. And I swear I learn more on this board about drugs and medicine than I do anywhere else.
I think your point is spot on about price increases for established drugs as being the driving factor behind populist anger and Presidential campaign promises to lower prescription drug costs. Martin Shkreli became one of the most "hated men in America" for massively upping the price of an existing drug (at least that's how I remember it....easily could be wrong). I don't think there would have been quite the same rage if he simply started the drug at a higher price to begin with. That speaks exactly to your point of course. And I agree that jacking up the price on existing drugs "just because they can" is not particularly nice (to put it mildly). So then getting back to the original question posed on this board by maumar, which was "As a biotech investor, are you concerned that pretty much every presidential candidate seems to have a plan to cut drug costs?"....I suppose that even if a President takes more action than I'd expect him or her to, it would likely (hopefully) be more directly aimed at price gouging on existing drugs as opposed to limiting the price of new drugs or limiting the amount of patent time before generics can come on line. At least I hope that's how it would go. Everyone seems to want generics quickly, but too quickly just makes it pointless for the original company to spend the time and money developing the drug in the first place. Or if you now have less time before generics arrive, you'll have to charge even more during the time it's all yours. That would be unfortunate and counterproductive. And I assure you I'm very sensitive to the idea of seniors (or anyone really) living on a tight budget and struggling to afford things because of their prescription drug costs. Sensible price reform could work well, especially if it doesn't hamper the R&D of all companies, big and small.
All the best,
Geoff
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