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BeetleByesterday at 10:26 PM3 repliesview on HN

If Americans didn't pay $800 for it, how would Europeans afford it?

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Replies

brandonmencyesterday at 11:18 PM

Drug companies net profit margin is 2x that of a typical company. EU and America have equal size populations.

Back of envelope, if the total cost of that drug went solely to profit, and profits were cut in half, it would cost $200 for both Europeans and Americans if we paid the same price.

So yeah, we are kind of subsidizing the lower prices for Europe.

oakesm9yesterday at 10:45 PM

Such an easily debunkable line with even the tiniest bit of critical thinking.

You’re basically saying the drug companies subsidise a loss in Europe by over charging Americans, right?

As the drug company is a private and doesn’t have to sell everywhere, why wouldn’t they just skip the loss making Europeans and just sell to Americans? They’d make more profit that way!

That must mean they make some profit from the European prices, otherwise they wouldn’t be bothering.

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