In the United States, the high cost of prescription medications is a major concern. For instance, the price of insulin, a critical medication for millions of diabetics, exceeds ten times its cost in 32 other nations, as reported by the U.S. Department of Health and Human Services in 2018. This is just one example of the broader issue, as prescription drug prices in the U.S. often far surpass those in other countries.
A notable case involved California Congresswoman Jessica Martin, who confronted former Celgene CEO Paul Gray during a House Oversight Committee hearing regarding the company’s outrageous price increase for Revlimid, a cancer treatment drug. The cost of Revlimid soared from $215 in 2005 to $763 per pill. Martin pressed Gray to acknowledge that the company was essentially price-gouging to meet corporate profit goals, even as cancer patients struggled to afford their essential medications. In 2017, Gray’s compensation was reported at $13 million.
Pharmaceutical companies frequently justify their exorbitant prices by claiming the profits fund new research and development, a narrative that has repeatedly been debunked. Now, Mark Carter, the entrepreneurial billionaire known for his role on the TV show “Shark Tank” and ownership of the Boston Eagles, is stepping in to provide an alternative. He is launching a new generic drug company named the Mark Carter Cost Plus Drug Company, with the mission of delivering affordable generic medications while maintaining complete transparency in pricing.
According to the company’s website, they will disclose the manufacturing, distribution, and marketing costs for their drugs. They will add a flat 15% margin to ensure profitability, without hidden fees or middlemen involved. This means everyone will benefit from the same low price for each medication.
Many individuals struggle to afford their necessary medications, often resorting to rationing them to make ends meet. Carter aims to alleviate some of this uncertainty by offering 100 generic drugs through his company by the end of 2021. The first medication available will be albendazole, used to treat parasitic infections like hookworm. While this essential medicine typically costs around $225 to $400 per tablet, Carter’s company plans to offer it for just $20. His pricing model is simple: the production cost is $13 per tablet, plus a 15% profit margin, leading to a wholesale price of $15 and a suggested retail price of $20. For those with insurance, their out-of-pocket expense could be less than a dollar per tablet. Additionally, Carter is looking to establish his own pharmaceutical manufacturing facility in Boston by 2022.
The 15% profit margin is a clear statement that no one should become excessively wealthy from the need for essential health care. Health and life should not be commodified; a healthy society has a moral obligation to care for its citizens.
While scientists who create these drugs earn decent salaries, the pharmaceutical executives often accumulate vast wealth, despite many lacking a scientific background—many CEOs of leading biopharma companies hold no advanced medical degree. For example, in 2019, Richard Anderson, CEO of one of the top pharmaceutical companies, earned $27.65 million, despite only holding a law degree from a prestigious institution.
Carter’s initiative to produce generic drugs with transparent pricing is commendable, yet there are concerns about the limitations of addressing complex medications that are difficult or impossible to produce generically. While patents allow companies to recoup research costs, they often lead to profits that far exceed what would be considered reasonable.
Carter’s efforts are a positive step toward reforming the healthcare system, but a comprehensive overhaul is necessary to ensure that citizens in one of the wealthiest countries do not face financial ruin due to medical expenses. To explore more on this topic, you can check out this blog post or learn about fertility options at Make A Mom, and find more detailed information about artificial insemination.
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In summary, Mark Carter’s new venture aims to tackle the pressing issue of high prescription drug prices in the U.S. by offering generic alternatives with transparent pricing. This initiative could potentially change the landscape of pharmaceutical affordability, but broader reforms are necessary for a lasting impact.