For anyone unclear about how U.S. pharmaceutical pricing works

by David Safier

Incredible article in today's Star about a Scorpion-sting antivenom. The incredible part of the story isn't the antivenom, which sounds great. It's the pricing.

Metro Phoenix hospitals are billing as much as $12,467 per vial of the antivenom, The Arizona Republic reported. Because the typical dose is three to five vials, bills for patients and their insurance companies can exceed $62,000.

How did they arrive at that price? Good question. As a matter of fact, great question, considering the same stuff costs $100 per vial in Mexico. $100 vs. $12,467. That's quite a markup.

The pharmaceutical folks indulge in self parody in explaining the ridiculously huge cost.

. . . when a therapeutic medication is developed for a small number of people – so-called "orphan drugs" for scorpion stings – costs can skyrocket. Drug companies market orphan drugs to a limited population, but they still must pay research, development and regulatory costs.

So they need to pay research and development costs for a drug that's already been developed? That's why they need to add $11,367 per vial to the cost of medicine readily available across the border, where "a Mexican biotechnology company produces more than 250,000 vials for Mexican residents"?

It's perfectly legal, so I guess it's not theft, right? Right?