Except in rare cases, pharmaceutical companies manufacture drugs for the US market. Drugs that manufacture in America, Europe, Japan, Canada, China and elsewhere are potential sales gravy. Drugs that cannot be manufactured in the United States are wasted. Potential success in America is a necessary and sufficient condition for the development of new drugs. There are four main reasons for this:
This is Charles L. Hooper and David R. From Henderson, “Expensive Prescription Drugs Are a Bargain,” The Wall Street JournalSeptember 13, 2022 (Print edition dated September 14.)
Why did the journal headline it? It is correct. Here’s another quote:
Research by Columbia University economist Frank Lichtenberg suggests that 73% of the increase in life expectancy in high-income countries between 2006 and 2016 was due to the adoption of modern medicine alone. He also found that drug costs saved per year were $13,904 in 26 high-income countries and $35,817 in the U.S. Americans would pay $36,000 to live an extra year.
We also address the fact that governments around the world free ride on pharma R&D that we Americans disproportionately pay for. In short, it is sad to be us. But we still get a good deal, as the above paragraph shows.