Saturday, October 23, 2004

And you wonder why they do not make the flu vaccine

"Texas Attorney General Greg Abbott filed suit Thursday against flu vaccine suppliers ASAP Meds Inc., doing business as Meds-stat, of Fort Lauderdale, Fla., and Dubin Medical Inc. of San Diego, Calif. for what Abbott said was unconscionable pricing of the critical vaccine."

The reason they are pricing the vaccine so high is because you keep suing them you old fart, and they have to pay for the legal bills.

While he might have a valid case, the only real way to bring prices down is to price control the industry or create competition in the industry. The reason they were able to charge so much is because they had a virtural monopoly on the drug.

cube

2 comments:

Dope on the Slope said...

The reason they were able to charge so much is because they had a virtural monopoly on the drug.Bingo. BTW, welcome to the RTB!

Cubicle said...

Of couse my next question would be why do they have a viritual monoply?

Is it because of market dominacne, or makers of the field leaving the vaccine industy because they are unable to make a profit.