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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (211302)11/9/2004 8:37:48 PM
From: TimF  Read Replies (1) | Respond to of 1571332
 
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



To: TigerPaw who wrote (211302)11/9/2004 8:45:22 PM
From: i-node  Read Replies (1) | Respond to of 1571332
 
The point being that R&D is not going to disappear if the U.S. allows drug prices to fall to world market values. It is not an immense expense relative to discretionary operations, and is useful in it's own right.

Yes, I don't know why they bother with R&D anyway.


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