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View Full Version : Mark-up for Prescription Drug prices....OUCH!!


Frankie
09-09-2004, 10:28 AM
This, I received via e-mail. I'm sharing it with you. Sorry if it's a re-post:


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 a lot of money by the tablet. 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.

Celebrex 100 mg
Consumer price (100 tablets): $130.27
Cost of general active ingredients: $0.60
Percent markup: 21,712%

Claritin 10 mg
Consumer Price (100 tablets): $215.17
Cost of general active ingredients: $0.71
Percent markup: 30,306%

Keflex 250 mg
Consumer Price (100 tab lets): $157.39
Cost of general! active ingredients: $1.88
Percent markup: 8,372%

Lipitor 20 mg
Consumer Price (100 tablets): $272.37
Cost of general active ingredients: $5.80
Percent markup: 4,696%

Norvasc 10 mg
Consumer price (100 tablets): $188.29
Cost of general active ingredients: $0.14
Percent markup: 134,493%

Paxil 20 mg
Consumer price (100 tablets): $220.27
Cost of general active ingredients: $7.60
Percent markup: 2,898%

Prevacid 30 mg
Consumer price (100 tablets): $44.77
Cost of general active ingredients: $1.01
Percent markup: 34,136%

Prilosec 20 mg
Consumer price (100 tablets): $360.97
Cost of general active ingredients $0.52
Percent markup: 69,417%

Prozac 20 mg
Consumer price (100 tablets) : $247.47
Cost of general active ingredients: $0.11
Percent markup: 224,973%

Tenormin 50 mg
Consumer price (100 tablets): $104.47
Cost of general active ingredients:! $0.13
Percent markup: 80,362%

Vasotec 10 mg
Consumer price (100 tablets): $102.37
Cost! of general active ingredients: $0.20
Percent markup: 51,185%

Zithromax 600 mg
Consumer price (1 00 tablets): $1,482.19
Cost of general active ingredients: $18.78
Percent markup: 7,892%

Zocor 40 mg
Consumer price (100 tablets): $350.27
Cost of general active ingredients: $8.63
Percent markup: 4,059%

Zoloft 50 mg
Consumer price: $206.87
Cost of general active ingredients: $1.75
Percent markup: 11,821%

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


It pays to shop around.

This helps to solve the mystery as to why they can afford to put a Walgreen's on every corner.

On Monday night, Steve Wilson, an investigative reporter for Channel 7 News in Detroit, did a story on generic drug price gouging by pharmacies. He found in his investigation, that some of these generic drugs were marked up as much as 3,000% or more.

So often, we blame the drug companies for the high cost of drugs, and
usually rightfully so. But in this case, the fault clearly lies with the pharmacies themselves. For example, if you had to buy a prescription
drug, and bought the name brand, you might pay $100 for 100 pills. The
pharmacist might tell you that if you get the generic equivalent, they
would only cost $80, making you think you are "saving" $20. What the
pharmacist is not telling you is that those 100 generic pills may have only
cost him $10!

At the end of the report, one of the anchors asked Mr. Wilson whether or
not there were any pharmacies that did not adhere to this practice, and he said that Costco consistently charged little over their cost for the generic drugs.

I went to the Costco site, where you can look up any drug, and get its online price. It says that the in-store prices are consistent with the online prices. I was appalled.

Just to give you one example from my own experience, I had to use the drug, Compazine, which helps prevent nausea in chemo patients. I used the generic equivalent, which cost $54.99 for 60 pills at CVS.

I checked the price at Costco, and I could have bought 100 pills for $19.89. For 145 of my pain pills, I paid $72.57. I could have got 150 at Costcofor $28.08.

I would like to mention, that although Costco is a "membership" type store, you do NOT have to be a member to buy prescriptions there, as it is a federally regulated substance. You just tell them at the door that you wish to use the pharmacy, and they will let you in (this is true, I went there this past Thursday and asked them).

I am asking each of you to please help me by copying this letter, and pasting it into your own email, and send it to everyone you know with an email address.


Sharon L. Davis Budget Analyst U.S. Department of Commerce Room 6839
Office Ph: 202-482-4458 Office Fax: 202-482-5480 Email Address:
sdavis@doc.gov


Mary Palmer Budget Analyst Bureau of Economic Analysis Office of Budget
&
Finance Voice: (202) 606-9295 Fax: (202) 606-5324

headsnap
09-09-2004, 10:32 AM
we wouldn't want the drug companies to be compensated for R&D, now would we?

Donger
09-09-2004, 10:32 AM
So, the active ingredient is the only cost they incur?

How about R&D? Manufacturing? Marketing? Distribution?

How about the fact that the pharmacies also have to cover their costs?

Michael Michigan
09-09-2004, 10:33 AM
Simple Answer:

Don't do drugs.

;)

KCTitus
09-09-2004, 10:34 AM
This question is probably too simple, but how much money does it take a company to develop, test and get FDA approval on a drug before it's available to the public?

I'm guessing it's a significant amount of money and time...

Frankie
09-09-2004, 10:35 AM
So, the active ingredient is the only cost they incur?

How about R&D? Manufacturing? Marketing? Distribution?

How about the fact that the pharmacies also have to cover their costs?

My original thought as well. However, 30,000% mark-ups?! :shake:

Donger
09-09-2004, 10:39 AM
My original thought as well. However, 30,000% mark-ups?! :shake:

They don't have 30,000% mark-ups.

As I and others are trying to inform you, the provided figures only take into account the cost of the active ingredients, not the other costs associated with the drugs (such as R&D, distribution, et al).

headsnap
09-09-2004, 10:42 AM
Frankie,

did you know that the raw materials(sand, oil, steel, etc...) used to make the computer you are using cost maybe as much as $5?

KCFalcon59
09-09-2004, 10:52 AM
ROFL

Here we go again.

Anton
09-09-2004, 11:05 AM
Check out, www.snopes.com :rolleyes:

Frankie
09-09-2004, 11:10 AM
Frankie,

did you know that the raw materials(sand, oil, steel, etc...) used to make the computer you are using cost maybe as much as $5?
Hence, the ever-dropping price of computers. How do you explain the ever-rising cost of drugs?

KCWolfman
09-09-2004, 11:18 AM
Where is the cost of R&D and deliberate with hold and waiting time from the FDA?

BigMeatballDave
09-09-2004, 11:19 AM
How do you explain the ever-rising cost of drugs?Well, its very simple, really. Its Bush's fault. Yeah, he's just a neo-Nazi, fascist, warmongering, dunderhead. Yeah, vote for the other guy that saves hamsters...

KCWolfman
09-09-2004, 11:20 AM
They don't have 30,000% mark-ups.

As I and others are trying to inform you, the provided figures only take into account the cost of the active ingredients, not the other costs associated with the drugs (such as R&D, distribution, et al).
Packaging, shipping, display, employee cost to do all of the above, etc etc etc.

If we are basing retail costs on "active ingredients" alone, the first companies we should assault are our electricity providers.... I bet the cost of electrons vs the actual price charged is in the millions of percentage markup.

KCWolfman
09-09-2004, 11:21 AM
Hence, the ever-dropping price of computers. How do you explain the ever-rising cost of drugs?
Electronics decrease in value as new technologies are developed.

The Commodore 64 can be purchased for 20.00 at any flea market. However, the latest processor, flat screen, and water cooled system will still cost you over 2,000.00

headsnap
09-09-2004, 11:32 AM
How do you explain the ever-rising cost of drugs?

:shrug:

John Edwards?

Mr. Kotter
09-09-2004, 11:35 AM
:shrug:

John Edwards?


So TRUE.....

That's rep. ROFL

trndobrd
09-09-2004, 11:39 AM
OMG! McDonalds charges $1.50 for a Coke. The active ingredients are less than $.03. Where is the OUTRAGE?

KCWolfman
09-09-2004, 11:41 AM
OMG! McDonalds charges $1.50 for a Coke. The active ingredients are less than $.03. Where is the OUTRAGE?
I still think the electron probably has the biggest markup.

Amnorix
09-09-2004, 01:39 PM
Not just R&D and FDA approval for the drug in question (which is very expensive) -- there are also all the costs to be covered in connection with R&D for drugs that do NOT make it to market, which need to be absorbed.

BUT, pharmaceuticals are a bit out of control in some respects. I'm not a big fan of all the advertising that they do, nor of the VERY impressive profit margins they have and earnings that the big companies post (although I'm an indirect stockholder in all of the big ones, I'm sure, through mutual funds).

There are issues throughout the health care industry, including the prescription drug industry. I do not see the mark-up of drugs, in and of itself, to be a major problem.

Mr. Kotter
09-09-2004, 02:30 PM
Not just R&D and FDA approval for the drug in question (which is very expensive) -- there are also all the costs to be covered in connection with R&D for drugs that do NOT make it to market, which need to be absorbed.

BUT, pharmaceuticals are a bit out of control in some respects. I'm not a big fan of all the advertising that they do, nor of the VERY impressive profit margins they have and earnings that the big companies post (although I'm an indirect stockholder in all of the big ones, I'm sure, through mutual funds).

There are issues throughout the health care industry, including the prescription drug industry. I do not see the mark-up of drugs, in and of itself, to be a major problem.

Ouch.....Frankie will have to defend this one without help, from at least 1/2 of more respected and formidable leftwing intellectuals around here.... :shake:

:deevee:

Calcountry
09-09-2004, 03:04 PM
This, I received via e-mail. I'm sharing it with you. Sorry if it's a re-post:


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 a lot of money by the tablet. 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.

Celebrex 100 mg
Consumer price (100 tablets): $130.27
Cost of general active ingredients: $0.60
Percent markup: 21,712%

Claritin 10 mg
Consumer Price (100 tablets): $215.17
Cost of general active ingredients: $0.71
Percent markup: 30,306%

Keflex 250 mg
Consumer Price (100 tab lets): $157.39
Cost of general! active ingredients: $1.88
Percent markup: 8,372%

Lipitor 20 mg
Consumer Price (100 tablets): $272.37
Cost of general active ingredients: $5.80
Percent markup: 4,696%

Norvasc 10 mg
Consumer price (100 tablets): $188.29
Cost of general active ingredients: $0.14
Percent markup: 134,493%

Paxil 20 mg
Consumer price (100 tablets): $220.27
Cost of general active ingredients: $7.60
Percent markup: 2,898%

Prevacid 30 mg
Consumer price (100 tablets): $44.77
Cost of general active ingredients: $1.01
Percent markup: 34,136%

Prilosec 20 mg
Consumer price (100 tablets): $360.97
Cost of general active ingredients $0.52
Percent markup: 69,417%

Prozac 20 mg
Consumer price (100 tablets) : $247.47
Cost of general active ingredients: $0.11
Percent markup: 224,973%

Tenormin 50 mg
Consumer price (100 tablets): $104.47
Cost of general active ingredients:! $0.13
Percent markup: 80,362%

Vasotec 10 mg
Consumer price (100 tablets): $102.37
Cost! of general active ingredients: $0.20
Percent markup: 51,185%

Zithromax 600 mg
Consumer price (1 00 tablets): $1,482.19
Cost of general active ingredients: $18.78
Percent markup: 7,892%

Zocor 40 mg
Consumer price (100 tablets): $350.27
Cost of general active ingredients: $8.63
Percent markup: 4,059%

Zoloft 50 mg
Consumer price: $206.87
Cost of general active ingredients: $1.75
Percent markup: 11,821%

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


It pays to shop around.

This helps to solve the mystery as to why they can afford to put a Walgreen's on every corner.

On Monday night, Steve Wilson, an investigative reporter for Channel 7 News in Detroit, did a story on generic drug price gouging by pharmacies. He found in his investigation, that some of these generic drugs were marked up as much as 3,000% or more.

So often, we blame the drug companies for the high cost of drugs, and
usually rightfully so. But in this case, the fault clearly lies with the pharmacies themselves. For example, if you had to buy a prescription
drug, and bought the name brand, you might pay $100 for 100 pills. The
pharmacist might tell you that if you get the generic equivalent, they
would only cost $80, making you think you are "saving" $20. What the
pharmacist is not telling you is that those 100 generic pills may have only
cost him $10!

At the end of the report, one of the anchors asked Mr. Wilson whether or
not there were any pharmacies that did not adhere to this practice, and he said that Costco consistently charged little over their cost for the generic drugs.

I went to the Costco site, where you can look up any drug, and get its online price. It says that the in-store prices are consistent with the online prices. I was appalled.

Just to give you one example from my own experience, I had to use the drug, Compazine, which helps prevent nausea in chemo patients. I used the generic equivalent, which cost $54.99 for 60 pills at CVS.

I checked the price at Costco, and I could have bought 100 pills for $19.89. For 145 of my pain pills, I paid $72.57. I could have got 150 at Costcofor $28.08.

I would like to mention, that although Costco is a "membership" type store, you do NOT have to be a member to buy prescriptions there, as it is a federally regulated substance. You just tell them at the door that you wish to use the pharmacy, and they will let you in (this is true, I went there this past Thursday and asked them).

I am asking each of you to please help me by copying this letter, and pasting it into your own email, and send it to everyone you know with an email address.


Sharon L. Davis Budget Analyst U.S. Department of Commerce Room 6839
Office Ph: 202-482-4458 Office Fax: 202-482-5480 Email Address:
sdavis@doc.gov


Mary Palmer Budget Analyst Bureau of Economic Analysis Office of Budget
&
Finance Voice: (202) 606-9295 Fax: (202) 606-5324
Hey, ITS FRANKIE.....

StcChief
09-09-2004, 03:14 PM
Walgreens has been pushing Generics for years, they have a greater profit margin.