Merck's new Covid pill? Didn't think they weren't going to gouge the hell out of the gov't?

[thewayne]

Because they're going to.

They're wanting to contract with the government for $700 for a five-day treatment. From the article: "Merck's advance purchase agreement with the US government pegs the price of a five-day treatment at about $700. But an independent analysis by public health researchers at Harvard estimated that a sustainable generic price—with a 10 percent profit margin built in—would be just $20 per treatment. Further, rival generic manufacturers in India are already expected to offer the drug at $15 or less for a treatment once it's authorized for use.

Given that, the $700 price tag in the US represents a 46-fold markup of the drug..."

Now, here's the beauty of it: it's already paid for, there is no R&D to recoup. Merck didn't develop it. It was developed by Emory University with $35 million worth of grant money by NIH an the Defense Department.

'But, it's not how much it's going to cost, it's how much you're going to save!' Also from the article, "As Business Insider notes, the US government pays $2,100 for an infusion of Regeneron's COVID-19 antibody cocktail and $3,200 for a five-day intravenous course of Gilead Sciences' antiviral remdesivir.As Business Insider notes, the US government pays $2,100 for an infusion of Regeneron's COVID-19 antibody cocktail and $3,200 for a five-day intravenous course of Gilead Sciences' antiviral remdesivir." And this pill would save even more because those treatments are usually given in-hospital to pretty sick people, and this pill could prevent the hospitalization entirely, which would save the hospital cost and keep some beds empty. Well, the beds wouldn't be empty, they'd fill up with other Covid patients for some time.

Meanwhile, Merck would make billions.

Good ol' American Capitalism at its finest. Privatize the profits - even if you didn't pay the costs, and socialize the losses. And there's no losses to spread around in this case!

https://arstechnica.com/science/2021/10/mercks-thor-inspired-covid-treatment-hammered-for-700-price-a-46x-markup/

Comments

[silveradept]

Yep, that sounds exactly right. One would think that the government that funded such a thing would smile politely and threaten great harm to Merck's profits if they decided to try and exploit people for this. Or some other thing that would make it clear how much the government would be displeased at profit-making during a panedmic like this, and especially on something where someone might be making profit on a thing people would need to help fight said pandemic.

[thewayne]

Problem is, so many internal gov't people and congresscritters are captured by the pharmabros that it's hardly surprising that they get away with it.  It'd be nice to see people with big money - the ones who are saying 'Tax us!' - buy up enough pharma stock to be heard, go to board meetings and say "Thou SHALT NOT... OR ELSE!"

[silveradept]

Yeah, we know regulatory capture is a thing, and completely a thing, same with the Congresscritters. It would just be nice to have someone give them the looming eye and the spectre of something much much worse.