In the News
Is fraud the business model of the prescription drug industry?
20th December 2016
Yes according to Democrat Bernie Sanders who is using the inter-regum between the Presidential election and the inauguration of Donald Trump to push his campaign alleging price gouging by the leading US pharmaceutical giants.
The business model of the pharmaceutical industry is fraud. They lie and collude to drive prices up. https://t.co/BGNF1Ij3E2
— Bernie Sanders (@SenSanders) December 18, 2016
More here
NEWS: Cummings, Sanders Raise Concerns about Heritage’s Assertions to Congress While Engaged in Alleged Price Fixinghttps://t.co/GwmR3js8zf
— Bernie Sanders (@SenSanders) December 16, 2016
Pharmaceutical executives must be held accountable for ripping off the American people. Fraud can no longer be an acceptable business model. https://t.co/iVveMawSW8
— Bernie Sanders (@SenSanders) December 14, 2016
I was struck in particular by an article in the FT that claimed the price of a routine anti-worming treatment is hundreds of times more expensive in the US than it is when paying over-the-counter in the UK. The brand Impax sells tapeworm treatment course for $880 v £3.50 in UK for the same treatment Ovex.
Staggering price gouging - Impax sells tapeworm treatment course for $880 v £3.50 in UK - itching to use in class https://t.co/OCwslkJY68
— Tutor2u Geoff (FRSA) (@tutor2uGeoff) December 18, 2016
More here from the Guardian
Could Pfizer's record fine for unfair prices change the industry's practices? https://t.co/EuULJzzLFj
— Guardian Business (@BusinessDesk) December 9, 2016
- Economics
- Blog
- In the News
- Monopoly
- Supernormal profit
- Anti-Competitive Behaviour
- Price gouging
- Market Power
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
You might also like
Price Discrimination and Consumer Welfare - A-Level Economics Essay Walkthrough
Practice Exam Questions
Theory of the Firm - Egg farmers get squeezed by higher costs
8th November 2022
Energy Economics - BP makes record profits
1st November 2022
Shell makes record profits - calls mount for a windfall tax
27th October 2022
Profit Margins - Are supermarkets taking advantage of drivers?
5th October 2022
Centrica announces 500% increase in profit & £59m dividend
28th July 2022
Key Diagrams - Monopoly and Productive Efficiency
Topic Videos