Pharmalot… Pharmalittle… The Weekend Nears
1 CommentBy Ed Silverman // May 13th, 2011 // 7:01 am
And so another working week will soon draw to a close. Already, we are daydreaming about weekend plans. Our modest agenda includes mowing the lawn (again), catching up on some reading and taking one of the short people to watch a soccer match. And you? Anything special in the works? Maybe a drive in the country? A mysterious rendezvous? Or perhaps some spring cleaning is in order? Whatever you fancy, have a great time. But, of course, go safely. Meanwhile, here are some tidbits. See you…
Shire Is A Takeover Target (Bloomberg News)
Iperian Fires Top Execs (Xconomy)
UK’s NICE Backs Merck And J&J’s Simponi For Rheumatoid Arthritis (InPharm)
Prescription Drug Price Increases Cannot Go On Forever (Reuters)
Ranbaxy Hopes To Supply Nexium To US By Year’s End (Economic Times)
Novartis Braces For Regeneron Eye Drug Competition (Reuters)
Australian Copyright Law Amendment Boosts Generics (Pharma Times)
Gilead Urged To Lower HIV Prices By Protesters (San Francisco Business Times)
Future Of Pharmac In New Zealand May Be In Doubt (Manawatu Standard)
EDITOR’S NOTE: Please check this post for updates throughout the morning
lawn mower pic thx to miggslives on flickr
industry insider
For every law, save for the Law of Gravity, there are invariably exceptions. During the Nixon Administration the Chairman of the council Herbert Stein formulated what has become Stein’s Law when talking about budget deficits. It goes as follows: “Something that cannot go on forever must eventually come to a stop”.
Drug prices have and will always be an exception to Stein’s Law. Drugs are necessary products, something that in economics is called a Giffen Good, a term most often applied to luxury goods or an Ivy League education. It is the obverse of the Law of Supply and Demand, and basically states the price of a desired commodity rises as it’s perceived value rises. Drugs will always have a high perceived value because, simply stated, we need them for our health and well being. In short, that’s why drug prices will never come down.