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Politics : Formerly About Advanced Micro Devices
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To: TigerPaw who wrote (211302)11/9/2004 8:37:48 PM
From: TimF  Read Replies (1) of 1571398
 
R&D is a high expense for drug companies. It is also an expense that is more of an investment for future earnings than reaping the present earnings. If drug companies face price controls, either direct or through more indirect regulation including importing price controlled drugs from overseas, than the expected return from that investment will go down. If the expected return goes down than less will be invested. Sure R&D won't disappear but it will decline. The more impact the price controls have the more R&D spending will decline.

Tim
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