Here’s how to stop price gouging by drugmakers like mylan _ the fiscal times

Generic drug manufacturer Mylan’s extreme price hike for the EpiPen soared to the top of the headlines last week. Business with high profit margins in india This product, consisting of an auto-injector devised by the U.S. Ebay products with highest profit margin military, combined with a $1 dose of epinephrine used to save the life of people suffering from a serious allergy attack, costs no more than $20 to manufacture. High profit business ideas philippines But since buying the rights to distribute the device, Mylan has raised the price of EpiPens from $57 each in 2007 to over $600 for a two-pack today.

Numerous members of Congress have denounced Mylan’s actions and demanded hearings, as has Hillary Clinton. Low investment business with high profit in chennai Even Sen. Small business low investment high profit Joe Manchin, a Democrat whose daughter is Mylan’s CEO, said that he shares the concerns of his colleagues about prescription drug price gouging.

But the government already has the power to prevent such behavior. Best business with highest profit margin They don’t need to pressure Mylan to “fix” the problem itself; they don’t even need to pass a new law. High profit jobs Multiple federal agencies could solve this simply by exhibiting the political will to use their authority to take on the drug companies.

First of all, let’s point out that the EpiPen case is not an outlier. High profit items to sell online Mylan has made a habit of enacting triple-digit price increases on generic drugs in cases where it holds dominant market share. Business with low investment and high profit in india The EpiPen increases were a misfire because of the widespread use of the device: Mylan sold 3.6 million of them last year. High profit business ideas uk In a way it’s more insidious for the company to jack up the price of obscure gallstone medication ursodiol by 542 percent, or gastrointestinal drug metoclopramide by 444 percent. High profit margin products Two U.S. Low cost business ideas with high profit philippines senators don’t have kids that use these drugs, so the price gouging passes unnoticed.

Drug companies industry-wide engage in this practice. Low startup high profit business Jazz Pharmaceuticals raised the price of Xyrem, a narcolepsy drug, by 841 percent in six years; the annual cost is now $65,000 a year. High profit products And we know about “pharma bro” Martin Shkreli’s 5,000 percent price hike on AIDS pill Daraprim.

None of these drugs are improving; in many cases they are generic compounds that have been on the market for decades. Low investment high profit business in kolkata But often, too few patients use these drugs to make it worthwhile for rivals to jump into the market, allowing incumbents to rake in profits.

In the case of EpiPens, Mylan got lucky. High profit margin products to sell It planned to raise the price before competitors arrived on the market, a common industry tactic to squeeze the last profits from a monopoly. High profit selling pdf But one competitor, the Auvi-Q, was recalled from pharmacies last year, and the Food and Drug Administration (FDA) rejected another potential alternative from Teva Pharmaceuticals this spring. Items with highest profit margin on ebay Adamis Pharmaceuticals has been rejected twice, and plans to resubmit later this year. Low startup cost high profit business These missteps gave Mylan a longer monopoly, and it took full advantage.

FDA reviews take time, and there is a particular backlog for approving generic drugs, meaning that there is unlikely to be a rival to EpiPen from another company until 2017 at the earliest. Business ideas with high profit margins It’s certainly important to test prescription drugs for safety, and claims that the FDA’s approval process is too slow and clunky are actually dangerous and misleading (drug approvals in the U.S. Highest profit business in india are actually the fastest of any developed country in the world). Low investment high profit business philippines However, the FDA does have the ability to both maintain its deliberate, evidence-based process and put an end to greedy drug company schemes.

The FDA can designate off-patent drug applications for priority review, moving them up in the approval queue. High profit business to start A paper from February in the Journal of the American Medical Association by three researchers at Johns Hopkins University argued that “the FDA should prioritize review of applications for essential drugs that can have a major effect on competition and affordability.” The agency can do this because one of the factors for priority review is to “mitigate or resolve a drug shortage,” and breaking up a monopoly price gouger would have that impact. High profit shares in india As Aaron Kesselheim of Harvard Medical School testified to the Senate in 2014, “the FDA should do everything in its current power to facilitate these new market entrants as quickly and as safely as possible.”

But the John Hopkins researchers go further. Low cost high profit business ideas They suggest that the FDA temporarily allow market competition in two ways during the priority review period. High profit business ideas in india One would be bulk “compounding” of drugs, where a pharmacist supervises the combination of its individual ingredients. High profit margin business This would be perfect for the EpiPen, which is just a delivery mechanism for an already-approved dosage of epinephrine. High profit small business Second, the FDA could allow the temporary importation of generic drugs approved in other countries while approval is pending for U.S. High profit crops competitors in concentrated markets. Business with high profit philippines This has been done before, in 2012, to deal with a shortage of cancer drug Doxil.

These steps would be consistent with President Obama’s executive order from April to all federal agencies, urging them to use their authority to increase competition. Small investment high profit business india And of course, the Federal Trade Commission and the Department of Justice have a role to play in using the antitrust laws to punish companies like Mylan that exhibit anticompetitive behavior, including fixing prices.

There’s even another option, as the L.A. List of business with low investment and high profit Times’ Michael Hiltzik pointed out last week. High profit margin business ideas The Bayh-Dole Act of 1980 mandates that any drug that benefited from federally funded research and development must be made available on “reasonable terms.” If not, the government can license the product to other drug companies to make it more accessible. Small items with high profit margin While “reasonable terms” has not been historically associated with pricing, and while the government has never actually enforced Bayh-Dole by forcing re-licensing, it has the authority, according to several experts.

The EpiPen benefited from federal government research through military development of the auto-injector, so Bayh-Dole could potentially be an available remedy. High profit cash crops It’s a matter of how far the government is willing to go to bring down drug prices.

In the absence of bold steps, we’ll probably get more fake solutions like the ones Mylan is taking. Small scale business with low investment and high profit Just yesterday, it agreed to offer a generic alternative to the EpiPen with a list price of $300 per pack, reducing the burden on insurers and employers. High risk high profit However, that’s still about triple the drug’s 2007 price. Business ideas with low investment and high profit in india The average revenue per prescription of both EpiPen and the generic would still be $280.

Monday’s announcement followed last week’s move by Mylan to distribute “coupons” to reduce some patient’s out-of-pocket cost on EpiPens up to $300. High profit business in pakistan However, patients in government health programs like Medicare or Medicaid cannot use savings cards. Best business with high profit And regardless of the coupon, the full price still gets paid by the insurer, meaning the overall cost of health care goes up, something eventually reflected in individual premiums. Low investment high profit business This isn’t a fix but a public relations maneuver.

But expecting pharmaceutical CEOs to give up monopoly profits is like expecting them to give up their fat salaries. High profit items The government already has multiple tools to end price gouging. Products with high profit margins Just by using them a couple times, drug companies will get the message that the party’s over and reconsider the kind of schemes we’ve seen with the EpiPen. High profit low cost business ideas The only question is whether Obama, or his successor, will have the fortitude to put patients over profits.

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