Posted by Jack Smith on March 5, 2003, at 13:27:57
In reply to Re: Why is Provigil so expensive? » Jack Smith, posted by Ritch on March 5, 2003, at 9:46:36
Some good thoughts Ritch. Even with its narrow indication, I still tend to think that the company would make more money with a lower price. Provigil is VERY expensive to the point that most insurance companies require some sort of prior authorization just to prescribe it--that can't be good for business. Again basic economics just seems to say that a lower price would lead to more profits, even though its a monopoly.
The one thing you say that does point to a "logical" answer is that the government is buying it in large quantities, then I would totally believe the drug company is pricing it up because they know the government will just about spend anything in the name of "national security." Where did you hear this, I'd be interested to know.
Also, anyone know when the patent expires??
JACK
> Jack, that is a very good question. My bet is that it *isn't* that expensive to manufacture and the reason they price it so high is because the indication is rather narrow (narcolepsy). No obesity, ADHD, depression indications. That restricts the number of scripts that can be written by quite a bit (despite off-label use). It is like a new flat-panel HDTV with no cable HDTV to use with it (restricted demand). OH, there's another thing-I heard the military is buying quite a bit of the stuff-with our tax money.
poster:Jack Smith
thread:205798
URL: http://www.dr-bob.org/babble/20030301/msgs/206144.html