Even China backs off on Price Control for Drugs

by Laura Ehrenberg-Chesler on May 8, 2014

in Foreign Markets,Healthcare,politics,United States of America

Earlier this year a congressman from California pressed down on a well known drug maker for the cost of their drug that CURES Hepatitis C, a devastating and often fatal disease.  For years, the government has tried to make the very companies that are working to solve or cure some of humanities worst maladies, the enemy.  They have used price controls as one of their main weapons, often ignoring the time and money it takes to develop these drugs.  Today the “Wall Street Journal” has an article that perfectly articulates why this is a flawed strategy.

From the linked article in the “Wall Street Journal” today.

But there have been unintended consequences in attempting to ensure the lowest prices on drugs. Many pharmaceutical companies registered to sell the thyroid medication Tapazole have halted production in recent years after pricing restrictions squeezed out profits, experts say, creating a shortage. Chinese patients with hyperthyroidism struggled to find the drug and many suffered with increased anxiety, muscle weakness and sleep disorder, according to local media reports.

In 2012, some drug-capsule manufacturers were found to be using industrial gelatin to cut production costs. The industrial gelatin contained the chemical chromium, which can be carcinogenic with frequent exposure, according to the U.S. Centers for Disease Control and Prevention.

“Manufacturers have attempted to save costs, and doing that has meant using lower-quality ingredients,” said Ms. Chen.

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