Seeking Alpha

Push comes to shove as pricey life-saving cancer drugs run up against government austerity...

Push comes to shove as pricey life-saving cancer drugs run up against government austerity programs and private payers unwilling to share costs for drugs that run as high as $100K a year. While Big Pharma argues that advanced technology will save money on the development side, companies such as PFE, BMY, RHHBY, and BAYRY.PK run the risk of seeing reduced profits with government-mandated price cuts for their most expensive drugs.
Comments (4)
  • Plavix is suppose to go generic this May? Is that going to hurt BMY, is yes how bad will it hurt?
    3 Apr 2012, 10:17 AM Reply Like
  • Sounds like someone is trying to make a case for health care rationing.
    3 Apr 2012, 11:28 AM Reply Like
  • PFE is not going to be hurt by the mandate, as a larger pool will bring profits albeit lower margins but more volume. I am for the mandate but think the entire health care issue should be repealed and begin a new well though plan. Most docs I know do not like the plan. The specialists will do o.k. But the generalist will be hammered. If the mandate is out, than the whole plan will fall like a sweater with the wool unraveling.Insurance only works when the pool is large enough so the healthy pay for the sick. That is how insurance works.
    3 Apr 2012, 11:36 PM Reply Like
  • "Insurance only works when the pool is large enough so the healthy pay for the sick. That is how insurance works."

     

    Insurance only works when the total liability can be quantified and allocated to the total insured pool. It isn't so much the healthy paying for the sick: It's being healthy for 20 years and then suffering an expensive illness and being covered. That's what Medicare is supposed to do. You pay in all your working career and then, after 65, when you normally have major health issues, the money is supposed to be there, if it hasn't been spent on someone's pet feel good project.
    4 Apr 2012, 10:02 AM Reply Like
DJIA (DIA) S&P 500 (SPY)