August 03, 2003

Reimportation of drugs

An excellent post by Jonathan Wilde on the issue of reimportation of drugs:

It is likely that the patent privilege is necessary in order to overcome the burden imposed by the FDA. In other words, the US government creates its own problem and requires itself as a solution. One monopoly, the FDA, gives rise to another monopoly, the patent privilege.

In a truely free market of regulation and production, would reimportation be as big an issue? Nobody is asking that question. The initial fixed costs that in part give rise to the immense pressure for the drug companies to generate revuenes prior to generics entering the market would likely be much lower.

Interventionism creates problems, therefore leading to more interventionism in a process that feeds itself...