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7steps2much | 3 years ago
Imagine you invent a way to cure cancer and it costs you 10000$ a treatment. How much do you charge the customer? Two times that? Ten? Twenty? At what point is someone going to stop in and force you to sell at a lower price? How long till public opinion turns against you? What if competition forces the price down? There are lot of variables that might lead to you ending up at 10000$ + a few percent profit margin.
Now imagine you have a medication that's 100$ a dosage. You sell it for 120$. That's 84 doses to cover the cost of a cancer treatment. Assuming the same markup on treatment that's 100 doses.
At this point it's the simple question what the company is more likely to get away with: Many small doses with a profit margin that add up? Or one large treatment with a big profit margin?
Right now reality shows that the small doses seem to work better. An example would be insulin. In the US it costs 30$ a dose upwards. Production costs are at less than 10$. [0] That's a 200% markup.
With numbers like these, why would you ever cure something?
[0]: https://marketrealist.com/healthcare/cost-to-manufacture-ins...
IanCal|3 years ago
The lower bound is surely the same as long term treatment, right? No player here would choose more expensive treatment that doesn't cure the patient. Insurers get premiums for longer if you live, and governments rely on having a workforce.
If governments act beyond the bounds of negotiating as a large buyer and legislate, have they not already done that for the treatment already? Is there as much to lose as you think?
> With numbers like these, why would you ever cure something?
Because you can charge more. Being cured is better than not being cured. If being ill and getting partially treated cost $100/month, would you honestly not pay $100.01/month forever but be cured?
Your arguments about public opinion and pressure rely people stepping in because your business practices are immoral, but this is what you're already accusing them of without any actual repercussions.
> What if competition forces the price down
If someone has a cure cheaper than your non-cure, frankly you're already fucked as a business. This also means that anyone who isn't the current main supplier has a very obvious reason to release an actual cure because then they'll get all of the business.