[It would have to cover R&D costs, so it would be higher than the current Canadian price.]
In fact, they make a healthy profit at Canadian prices, and probably do quite well, even at the Mexican prices.
Another approach might be stopping or threatening to stop the research subsidies and tax exemptions.
That probably isn't the case. American drug companies recover their actual R&D easily at current Canadian prices, plus a solid profit.
And to settle law-suits and hire expert witnesses and bogus test-results, yes.Even at the self-reported amounts spent on R&D, almost all drug companies spend much more on marketing, and most book more money as profit than R&D: http://www.bbc.com/news/business-28212223
Then figure that the self-reported R&D covers a lot of activity whose real purpose is to extend patent protection and the like.
In fact, they make a healthy profit at Canadian prices, and probably do quite well, even at the Mexican prices.
Regulation and oversight is important (and probably next on the budget chopping-block), especially since there have been quite a few dangerous products released with inadequate testing.It's possible that we might see more money spent on true R&D, rather than less, if we bled the big money from the pharmaceutical business.
Another approach might be stopping or threatening to stop the research subsidies and tax exemptions.
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