Hedge funds buying up drug companies. Prices increase 5000%

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senseamp

Lifer
Feb 5, 2006
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Biotech ETF is down 3.6% today. It was only a matter of time before big pharma over-reached and this became a political issue. Looks like this doofus has done it for them.
 

tweaker2

Lifer
Aug 5, 2000
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No different that a bunch of ghouls tearing at the flesh of the weak and infirm.

If only what they're doing could be considered price gouging and get criminally charged for it.
 

senseamp

Lifer
Feb 5, 2006
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I wonder if the hedge fund guy is shorting other biotechs and trying to create a political blowback that will tank their prices. In any case, he is bringing the issue of out of control drug pricing to the political forefront, which is long overdue. We need price controls on drugs, we need Medicare to be able to negotiate prices on them, and we need the whole medical industry regulated as a public utility.
 

Attic

Diamond Member
Jan 9, 2010
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I wonder if the hedge fund guy is shorting other biotechs and trying to create a political blowback that will tank their prices. In any case, he is bringing the issue of out of control drug pricing to the political forefront, which is long overdue. We need price controls on drugs, we need Medicare to be able to negotiate prices on them, and we need the whole medical industry regulated as a public utility.

Why not have competition? And fixing drug patenting laws?

Some dipshit is able to take a $13 pill and make it $750 overnight because the system is broken. No one else can make the drug. In a real free market someone else would come in and sell it for $15 and then $10 until competition set the price, as opposed our current paradigm where lobbyists working for big Pharma are able to create and set laws to corrupt drug prices and patenting.

Hey, if we have to have insurance, that has to pay for this stuff, that has to be subdized... can you really blame the low moral crew for exploiting such a system... after all they are the ones who put this current system and the ACA in place.
 

senseamp

Lifer
Feb 5, 2006
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Why not have competition? And fixing drug patenting laws?

Some dipshit is able to take a $13 pill and make it $750 overnight because the system is broken. No one else can make the drug. In a real free market someone else would come in and sell it for $15 and then $10 until competition set the price, as opposed to lobbyists working for big Pharma who corrupt drug prices and patenting.

Because free markets don't work if the alternative is you die. That's how robberies work. That's why public utilities are regulated, so power company can't turn off your heat in the middle of a cold winter and demand $1000/kwh to restore it.
 

Attic

Diamond Member
Jan 9, 2010
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Because free markets don't work if the alternative is you die. That's how robberies work. That's why public utilities are regulated, so power company can't turn off your heat in the middle of a cold winter and demand $1000/kwh to restore it.

That's not correct. Free markets work, your mistake is thinking that we have a free market in the USA.

What we have is enforced corrupt capitalism by the State. That is why drug patent laws are the way they are and drug prices are out of control. You an also look at the growing wealth inequality that is being subsidized by this crony capitalism.


Don't make the mistake of thinking the USA is capitalist and free market and then blaming the f ups on capitalism and the free market. The USA is crony capitalism and non free market. The bail outs should have been the wake up call for most.
 

senseamp

Lifer
Feb 5, 2006
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That's not correct. Free markets work, your mistake is thinking that we have a free market in the USA.

What we have is enforced corrupt capitalism by the State. That is why drug patent laws are the way they are and drug prices are out of control. You an also look at the growing wealth inequality that is being subsidized by this crony capitalism.


Don't make the mistake of thinking the USA is capitalist and free market and then blaming the f ups on capitalism and the free market. The USA is crony capitalism and non free market. The bail outs should have been the wake up call for most.

Free markets don't work on things like utilities and health care. We tried deregulating utilities here in CA, they proceeded to create artificial shortages and jack up prices. This needs to be regulated down to the very last detail.
Note that in countries where drug and medicine markets are tightly regulated they don't have these outrages.
 

sm625

Diamond Member
May 6, 2011
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This is what happens when you keep voting for corporate stooges who will pass 2000 page tomes of healthcare reform that dont contain one actual page of healthcare reform.

END. MEDICAL. MONOPOLIES.

END. PRICE. FIXING.

Or just keep bending over.
 

tweaker2

Lifer
Aug 5, 2000
14,478
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A good time for the folks in the running for the presidency to make an issue of this and do something good for the nation's working class and those who are truly in need of affordable health care.

Eh, who am I kidding.
 

Hugo Drax

Diamond Member
Nov 20, 2011
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One hedge fund shorting a company about to introduce a new drug was trying to get the FDA not to approve it so they can cash in.

This is gonna be like the 1980s LBOs run. Expect skyrocketing drug prices as they start buying up companies to make a killing.
 

senseamp

Lifer
Feb 5, 2006
35,786
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A good time for the folks in the running for the presidency to make an issue of this and do something good for the nation's working class and those who are truly in need of affordable health care.

Eh, who am I kidding.

Hillary Clinton just made an issue out of it :thumbsup:
http://www.usatoday.com/story/money/markets/2015/09/21/hillary-clinton-tweet-biotech/72563788/
"Price gouging like this in the specialty drug market is outrageous. Tomorrow I'll lay out a plan to take it on"
 

Hugo Drax

Diamond Member
Nov 20, 2011
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A good time for the folks in the running for the presidency to make an issue of this and do something good for the nation's working class and those who are truly in need of affordable health care.

Eh, who am I kidding.

Clinton will not that is for sure, she is getting plenty of support from the HF industry as well as bush. (This is why BUSH III/CLINTON II) Will be the choice provided to Americans.

http://www.bloomberg.com/politics/a...ations-from-hedge-fund-titans-top-republicans
 

Cozarkian

Golden Member
Feb 2, 2012
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That's not correct. Free markets work, your mistake is thinking that we have a free market in the USA.

In a market like life saving drugs demand is basically perfectly inelastic. The free market can only adequately regulate the price if there are no barriers to entry. And I mean literally no barriers. If I can't start making the same drug today without any need to spend up-front costs or time to research, produce, market and sell the drug, then the free market will not reach the optimum market price.
 
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