More on the Drug Industry
In The Truth About the Drug Companies, Marcia Angell presents a succinct version of the arguments she presented earlier in the excellent article America's Other Drug Problem (pdf), which was co-written with Arnold S . Relman. The points she makes are:
- Drug companies increase the price of drugs over the rate of inflation every year.
- The elderly are worst effected by drug prices.
- Contrary to company claims, research and development are a relatively small part of their budgets. Marketing and administration take a larger part of the budget, and profits are an even larger part.
- The drug industry is not particularly innovative.
- The industry depends on research by American universities and the tax-funded NIH. The Bayh-Dole act made it possible to remove taxpayer-financed discoveries from the public domain.