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

Quote:

Originally Posted by Donger

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?!

Donger · 09-09-2004, 10:39 AM

Quote:

Originally Posted by Frankie

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

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

Here we go again.

Anton · 09-09-2004, 11:05 AM

Check out, www.snopes.com

Frankie · 09-09-2004, 11:10 AM

Quote:

Originally Posted by headsnap

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?

Dave · 09-09-2004, 11:19 AM

Quote:

Originally Posted by Frankie

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

Quote:

Originally Posted by Donger

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

Quote:

Originally Posted by Frankie

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

09-09-2004, 10:28 AM
Frankie Banned Join Date: Jul 2001 Casino cash: $163018	Mark-up for Prescription Drug prices....OUCH!! 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
Posts: 27,013

09-09-2004, 10:32 AM	#2
headsnap Da! Join Date: Aug 2001 Location: Space Station #5 Casino cash: $56878	we wouldn't want the drug companies to be compensated for R&D, now would we?
Posts: 15,399

09-09-2004, 10:32 AM	#3
Donger "Think BOOM!" Join Date: Nov 2003 Location: 33.675° N 106.475° W Casino cash: $88	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? __________________ I think the young people enjoy it when I "get down," verbally, don't you?
Posts: 68,234

09-09-2004, 10:33 AM	#4
Michael Michigan scribe Join Date: Aug 2000 Casino cash: $1000	Simple Answer: Don't do drugs. __________________ <<<<<>>>>> ...With all the romance of the TonTon Macoute...
Posts: 2,762

09-09-2004, 10:34 AM	#5
KCTitus Archivist Join Date: Aug 2000 Location: The Ethernet Casino cash: $34942	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... __________________ Anything you post on this BB can and will be used against you...
Posts: 23,481

09-09-2004, 10:42 AM	#8
headsnap Da! Join Date: Aug 2001 Location: Space Station #5 Casino cash: $56878	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?
Posts: 15,399

09-09-2004, 10:52 AM	#9
KCFalcon59 Supporter Join Date: Sep 2002 Location: Topeka, Kansas Casino cash: $10082736	Here we go again.
Posts: 5,575

09-09-2004, 11:05 AM	#10
Anton Starter Join Date: Jul 2003 Location: SF, CA Casino cash: $1150	Check out, www.snopes.com __________________ "You just can't knock it, until you try it...come on, RIDE the train, RIDE the train...WOO-HOO!!!" --Quad City DJs
Posts: 304

09-09-2004, 11:18 AM	#12
KCWolfman Fall down 7 times, get up 8 Join Date: Aug 2000 Casino cash: $9172	Where is the cost of R&D and deliberate with hold and waiting time from the FDA? __________________ How strangely will the Tools of a Tyrant pervert the plain Meaning of Words! Samuel Adams
Posts: 15,463

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