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So think about a generic drug manufacturer looking at the Daraprim situation.There are fixed costs associated with building a new plant (or possible lost revenue on other drugs, if they switch production at an existing plant), getting samples of the drug, and figuring out how to make the generic product…with Daraprim, there simply isn’t a big enough patient population for a competitor to sell a “good amount” to.So how come Longecity can do this, but real generic pharmaceutical manufacturers can’t?I’m not totally sure, but my best guess is that it involves bioequivalence studies (different from purity studies).
In fact, I encourage somebody to do exactly that as an act of civil disobedience/political activism and win themselves some free publicity.
Moreover, there’s risk associated with starting a drug price war.
Let’s say I decide to launch Sarah’s Generic Drug Company, and I’m pretty sure I can break even by slightly undercutting Turing and charging 0.
Someone on a drugs forum hears about a cool experimental chemical that sounds fun to try.
They get a couple dozen friends in on it and pay a lab in China a few hundred dollars to synthesize a big batch.
If all you want to do is synthesize an active ingredient in powder form, and you’re not too concerned about staying on the right side of the law, it costs pennies and takes however long you need to Fed Ex something from China.