{"id":175086,"date":"2010-01-13T12:18:43","date_gmt":"2010-01-13T17:18:43","guid":{"rendered":"tag:business.theatlantic.com,2010:\/\/3.33431"},"modified":"2010-01-13T13:31:20","modified_gmt":"2010-01-13T18:31:20","slug":"on-the-pharma-gravy-train","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/175086","title":{"rendered":"On the Pharma Gravy Train"},"content":{"rendered":"<p>Today, I became a big beneficiary of the enormous marketing budgets of pharmaceutical companies.&nbsp; I know many of y&#8217;all suspected it all along. &nbsp; But sadly, there was no massive check waiting for me in the mail today.&nbsp; No, what happened is, I went to the pulmonologist for a lung function test, because my asthma has been steadily getting worse for months.<\/p>\n<p>The bad news is what I already knew&#8211;I am no longer well controlled<br \/>\nenough with Singulair and a rescue inhaler, and I need to go on inhaled<br \/>\nsteroids.&nbsp; The good news is that I left with an armful of free samples,<br \/>\nso that I can figure out which inhaled steroid works for me most<br \/>\ncost-effectively.&nbsp; That&#8217;s courtesy of those bloated marketing budgets<br \/>\nyou hear so many complaints about, <a href=\"http:\/\/www.google.com\/url?sa=t&amp;source=web&amp;ct=res&amp;cd=2&amp;ved=0CA0QFjAB&amp;url=http%3A%2F%2Fwww.kff.org%2Frxdrugs%2Floader.cfm%3Furl%3D%2Fcommonspot%2Fsecurity%2Fgetfile.cfm%26PageID%3D14378&amp;ei=w_hNS6OJDMr_8AbvppH_DQ&amp;usg=AFQjCNFQZwq-gAdgKayyIdAFjd3VSOrP9A&amp;sig2=TuOq3EI0WJjN3Pf5ozzwfQ\">more than half of which<\/a> go to free samples.<\/p>\n<p>This isn&#8217;t such a great deal for the pharmaceutical industry, since<br \/>\notherwise I&#8217;d be paying full freight for one of their products.&nbsp; All it<br \/>\ndoes for the pharma firms is buy them a seat at the table&#8211;a chance to<br \/>\nwin my business.&nbsp; But it&#8217;s a great deal for me, and millions of<br \/>\nconsumers like me who get a chance to try multiple products before we<br \/>\ncommit to one.&nbsp; <\/p>\n<p>One of the things that bugs activists about this practice is that the<br \/>\npharmaceutical companies record the cost of the marketing as the full<br \/>\nprice of the product, not the cost of producing it.&nbsp; But this is<br \/>\nactually the right accounting rule, precisely because of what I<br \/>\noutlined above:&nbsp; the samples cost them a full price sale.&nbsp; One could<br \/>\nargue that it should be slightly lower, because I might have insurance<br \/>\nwhich would pay a discounted rate for the product.&nbsp; But whatever the<br \/>\nexact right price is, it&#8217;s closer to the market price of the product<br \/>\nthan to the production cost.&nbsp; Keep that in mind the next time you hear<br \/>\nsomeone complaining that pharma spends more on marketing than<br \/>\ndevelopment; if it weren&#8217;t for all those free samples, and the reps who<br \/>\nbring them to the doctors, they&#8217;d spend considerably less. <\/p>\n<p><br clear=\"both\" style=\"clear: both;\"\/><br \/>\n<br clear=\"both\" style=\"clear: both;\"\/><br \/>\n  <a style='font-size: 10px; color: maroon;' href='http:\/\/www.pheedcontent.com\/hostedMorselClick.php?hfmm=v3:0b9a8f315911a0b065267a1ed0c70071:2UKMWg7fAZdFpNqD38N%2B9fexgnQBRsRCH2LUxpET9Rkk3cjvSCqHq43q2s%2BsCoo%2BpaWbGYg9BuZT'><img border='0' title='Email this Article' alt='Email this Article' src='http:\/\/images.pheedo.com\/images\/mm\/emailthis.png'\/><\/a><br \/>\n  <a style='font-size: 10px; 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I know many of y&#8217;all suspected it all along. &nbsp; But sadly, there was no massive check waiting for me in the mail today.&nbsp; No, what happened is, I went to the pulmonologist for a lung function test, because my asthma [&hellip;]<\/p>\n","protected":false},"author":80,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-175086","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/175086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/80"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=175086"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/175086\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=175086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=175086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=175086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}