Raking in the dough
Time and again, you’ve heard the mantra from me and many of my colleagues: The research on natural products is limited because without the ability to patent them, there simply isn’t enough profit potential for the big drug companies.
Well, we weren’t just whistling Dixie.
HSI Panelist, Allan Spreen, M.D., recently sent me the following commentary on an article he found which sheds light on profit margins that would make even Donald Trump blush.
“I just ran into a report generated by the Life Extension Foundation, the non-profit research organization. In their October 2002 edition of Life Extension magazine they list the cost of the key ingredients of many popular prescription drugs. The antibiotic Keflex, for instance, costs a total of $1.88 for enough of the active ingredient to make 100 of the 250 milligram tablets. The amount that consumers pay for 100 tablets: $157.39 (an 8,372% mark-up).
“Prilosec, the ulcer ‘wonder drug,’ lists a consumer price of $360.97 for 100 of the 20 milligram tabs – the active ingredient costs the drug company $0.52 (a 69,417% mark-up).
“Not many drug classes are immune. Norvasc, a blood pressure drug, has a consumer price of $188.29 for 100 of the 10 milligram tabs, while the active ingredient cost is $0.14 (a 134,493% mark-up). Prozac (ever heard of that one?) gets into the fun stuff: 100 of the 20 milligram tabs is listed at a consumer price of $247.47, while the active ingredient costs get ready $0.11 (224,973% mark-up).
“Now that you need Xanax to assimilate the above numbers, let’s see what you pay for it: $136.79 for 100 of the 1 milligram tabs, while the active ingredient cost is 2.4 cents (569,958% mark-up).
“I readily admit that drug companies have other expenses: research & development, packaging, marketing, delivery, product liability, FDA approvals of course, and more, I’m sure. But if you’ll guarantee me a captive audience of millions of people having no choice (in their minds) but to buy your product, and permit me to sell your product for a 500,000% mark-up, then I’ll pay the additional expenses without a single complaint”
To Your Good Health,
Jenny Thompson
Health Sciences Institute
