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Politics : Canadian Political Free-for-All
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To: NOW who wrote (4072)5/6/2004 9:32:14 AM
From: Gulo  Read Replies (1) of 37571
 
All the statements in NEJM may be true but that does not change the fact that lower prices will lower R&D spending. Why can't you see the obvious connection? It DOESN'T MATTER if big pharmas spend 14% or even 1% of revenue on R&D. (Besides, I already pointed out that R&D spending by the big companies has dropped markedly, with the slack taken up by smaller biotechs.) The simple fact is that with lower prices, the market is smaller in dollar terms. The smaller the market, the less everybody spends on everything.

-g
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