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Received an informative email about drug costs (real vs. markup)

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KansDem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-05-04 04:00 PM
Original message
Received an informative email about drug costs (real vs. markup)
Did you ever wonder how much it costs a drug company for the active
ingredient in prescription medications? Some people think it must cost a
lot, since many drugs sell for more than $2.00 per tablet. We did a
search of offshore chemical synthesizers that supply the active
ingredients found in drugs approved by the FDA. As we have revealed in
past issues of Life Extension, a significant percentage of drugs sold in
the United States contain active ingredients made in other countries.

In our independent investigation of how much profit drug companies
really make, we obtained the actual price of active ingredients used in
some of the most popular drugs sold in America. The chart below speaks
for itself.

BRAND NAME OF DRUG-CONSUMER PRICE 100 TABS-COST OF GENERAL ACTIVE INGREDIENTS-% MARKUP
Celebrex 100 mg $130.27 $0.60 21,712%
Claritin 10 mg $215.17 $0.71 30,306%
Keflex 250 mg $157.39 $1.88 8,372%
Lipitor 20 mg $272.37 $5.80 4,696%
Norvasc 10 mg $188.29 $0.14 134,493%
Paxil 20 mg $220.27 $7.60 2,898%
Prevacid 30 mg $44.77 $1.01 34,136%
Prilosec 20 mg $360.97 $0.52 69,417%
Prozac 20 mg $247.47 $0.11 224,973%
Tenormin 50 mg $104.47 $0.13 80,362%
Vasotec 10 mg $102.37 $0.20 51,185%
Xanax 1mg $136.79 $0024 569,958%
Zestril 20 mg $89.89 $3.20 2,809%
Zithromax 600mg $1,482.19 $18.78 7,892%
Zocor 40mg $350.27 $8.63 4,059%
Zoloft 50mg $206.87 $1.75 11,821%

Since the cost of prescription drugs is so outrageous, I thought
everyone I know should be informed about this. Please read the following
and pass it on.

Of course, you still have to add labor and advertising costs and other
overhead (Management salaries, etc.) plus recovery of research costs.

Then the pharmacists & other "middle men" get their share of the selling
price.

Even so, it seems that medicines may be overpriced by as more than 150%
unless they are recovering research costs in less than 5 or 6 years and
if that s the case, the prices should go down considerably after 4 or 5
years. I suppose the excess profits are gong to upper level management
and to shareholders.


I did a search on Google and find the website:
http://www.importeddrugs.com/hi_drug_prices.htm

I apologize for the bad formatting of the paragraphs and chart, but didn't feel a need to "correct" them since the website link is available.
:hi:


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GainesT1958 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-05-04 04:07 PM
Response to Original message
1. I have a doctor who's a rare gem...
He actually helps me save money on my co-pay by letting me know about--and calling in--generic drugs whenever they're available. Though they're still too expensive, this does help.

It's sickening to see drugs like Keflex, a common antibiotic, and Paxil, a common anti-depressant, priced at "predatory lender"-type levels. This is why allowing Canadian re-importation is vital until we have an Administration that will finally be on the CONSUMERS' side on this rip-off!:mad:

B-)
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tridim Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-05-04 04:26 PM
Response to Original message
2. I'd like to know the markup on nicotine replacement
I'm currently using Nic lozenges, they cost about $50 for 72 doses. I'd guess that many people choose not to quit because the therapy is too expensive. As it is, I spend about twice as much on the lozenges than I did buying cigarettes. That's just wrong.
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drdigi420 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-05-04 04:31 PM
Response to Reply #2
3. it only cost me $200 to quit nicotine
at least, that's what i paid for the ounce of pot i used to get over the severe nicotine withdrawal symptoms

and since pot isn't addictive, twas no problem cutting back to recreational useage only

so, i guess you could say, in a way, pot saved my life

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Hamlette Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-05-04 04:47 PM
Response to Reply #3
6. $200 for an ONCE of pot?
Gawd I'm showing my age. I remember when it cost, honest to god, $8 per ounce (lid we called it then).
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Hamlette Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-05-04 04:46 PM
Response to Reply #2
5. Nicorette gum
now has a knock off. Nicotrol. Costs $16.50 per box of 105. Check the web, you might find a better price for the lozenges although they are still quite new.

I'm sure the markup is very high.

What pisses me off is the mantra that we pay high drug costs because of the R&D costs then come to find out that big pharma pays more for advertising than for R&D.
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NashVegas Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-05-04 04:34 PM
Response to Original message
4. Marketing
Marketing costs - all those "Happy Fun Ball" commercials that have grown exponentially accross your tv screen - are the biggest area of growth in pharm budgets over the last 15 years.
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