Survey results: IS THE MS DISEASE-MODIFYING THERAPY MARKET IN THE UNITED STATES A CARTEL?



"Although the results of this latest survey are clear I am not sure if the respondents are truly aware of the implications of these results. In free market economies cartels are generally illegal." 

The following is the Wikipedia definition:

A cartel is a formal agreement among competing firms. It is a formal organization where there is a small number of sellers and usually involve homogeneous products. Cartel members may agree on such matters as price fixing, total industry output, market shares, allocation of customers, allocation of territories, bid rigging, establishment of common sales agencies, and the division of profits or combination of these. The aim of such collusion (also called the cartel agreement) is to increase individual members'profits by reducing competition.

"I very much doubt the Pharma industry would do anything illegal, such as running a cartel in the United States. However, the current trend of MS DMT pricing in the US is clearly illogical; it is not predictable or based on free-market principles. Every time a new DMT is launched in the US the prices of all the other drugs go up. Why? Common sense suggests the market should become price sensitive and the prices should fall. Is this another example of the Red Queen Effect? I am not an economist so I have no idea why the US is market is behaving so irrationally. May be some of you may have the answer? Whatever the explanation it is unsustainable and it is only a matter of time before regulators and politicians get involved. When markets stop working they need to be regulated. Ask the bankers!"

Other posts on this blog that relate to this survey:

25 Sep 2012
I was at a meeting yesterday with some American colleagues and nearly fell off my chair when I heard that teriflunomide has been priced at $45,000 per year for American MSers. Even more astounding was the news that ...

07 Oct 2012
The Red Queen Effect, is a term taken from the Red Queen's race in Lewis Carroll's Through the Looking-Glass. The Red Queen said, "It takes all the running you can do, to keep in the same place." The marketing departments ...
13 Jun 2012
The Red Queen Effect, is a term taken from the Red Queen's race in Lewis Carroll's Through the Looking-Glass. The Red Queen said, "It takes all the running you can do, to keep in the same place." The marketing departments ...
26 Sep 2012
This reminds me of the red queen! Each company feels it has to keep up with the next. The problem is they seem to behaving like Lemmings! Let's hope the goose that lays the golden eggs doesn't die from an obstructive ...

27 Nov 2011
The Red Queen Effect, is a term taken from the Red Queen's race in Lewis Carroll's Through the Looking-Glass. The Red Queen said, "It takes all the running you can do, to keep in the same place." The marketing departments ...

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