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-   -   Walgreens marks up generic drugs by 975% (http://www.spursreport.com/forums/cantina/63712-walgreens-marks-up-generic-drugs-975-a.html)

spurssheriff 03-15-07 04:04 PM

Walgreens marks up generic drugs by 975%
 
http://www.boingboing.net/2007/03/15...arks_up_g.html

On the Freakonomics blog, Stephen Dubner (co-author of the wonderful Freakonomics: A Rogue Economist Explores the Hidden Side of Everything) digs into the pricing on generic drugs and finds that the main-street pharmacies mark up their offerings by 975 percent!
Even once you factor in the cost of buying a membership at Costco and Sam’s Club, the price differences were astounding. Here are the prices he found at Houston stores for 90 tablets of generic Prozac:

Walgreens: $117

Eckerd: $115

CVS: $115

Sam’s Club: $15

Costco: $12

Those aren’t typos. Walgreens charges $117 for a bottle of the same pills for which Costco charges $12.

MomBear 03-15-07 04:06 PM

:yikes daymn...

Hairyhandedgent 03-15-07 04:16 PM

Quote:

Originally Posted by bonnington (Post 1057217)
How much is the membership at cotsco or Sam's?

about half of what you'd save by having one of those prescriptions filled

spurssheriff 03-15-07 05:49 PM

$35 or so to get a membership. Well worth it for many reasons.

necron 99 03-16-07 10:46 AM

If you are not using a prescription service, then yes, Costco is the way to go. Otherwise it shouldn't matter who you use.

cheesehead4spurs 03-16-07 11:52 PM

Quote:

Originally Posted by bonnington (Post 1057694)
Can you buy drugs without prescription in the US?

Prescribed drugs are not available at our Sam's Club, so there must be pharmacies associated with some of them elsewhere. Unless the drugs have been approved for over-the-counter use (ie Prilosec, Zantac), they must be dispensed by a licensed pharmacist. Of course with the internet, all things are possible, but one needs to be very wary of some of the sellers since pills may not contain what they are said to contain. I am truly appalled at the prices I have seen. My daughter was just diagnosed with MS and her med costs anywhere from $15,000 to $25,000 a year, depending on the source. There is no way she could pay for the med without insurance. So what is 500 pharmacy companies at the bottom of the ocean??------a good start. :D

Hairyhandedgent 03-17-07 12:52 AM

i know I wouldn't want to be involved in the pharmaceutical business .... it costs millions upon millions to develop a single drug .... then it has to be tested and approved by the FDA... then you have the lawsuits if even after years of development and testing there are unforseen problems...then the patent you have is only for a limited time after which it can be sold generically by anyone making your patent worthless so you better have new products coming down the tube at all times to fund the research for the products that may or may not ever get to market ..... if a company is honest and doing the right thing it's a very dicey proposition to say the least. I'm not defending the shady practices of some of the drug companies but they face alot of challenges and if you look at some of the big drug compaies' return on investment it's not out of line with other businesses. you hit a homerun with a prozac and have a good year or two and then a drug you spent tens of millions of dollars on fails to get FDA approval and you're in the crapper...

Money4Nothing 03-19-07 04:39 PM

Quote:

Originally Posted by Hairyhandedgent (Post 1057970)
i know I wouldn't want to be involved in the pharmaceutical business .... it costs millions upon millions to develop a single drug .... then it has to be tested and approved by the FDA... then you have the lawsuits if even after years of development and testing there are unforseen problems...then the patent you have is only for a limited time after which it can be sold generically by anyone making your patent worthless so you better have new products coming down the tube at all times to fund the research for the products that may or may not ever get to market ..... if a company is honest and doing the right thing it's a very dicey proposition to say the least. I'm not defending the shady practices of some of the drug companies but they face alot of challenges and if you look at some of the big drug compaies' return on investment it's not out of line with other businesses. you hit a homerun with a prozac and have a good year or two and then a drug you spent tens of millions of dollars on fails to get FDA approval and you're in the crapper...

:word

Drugs cost so much because the R&D overhead on drug development is insanely high. Drug companies have to recoup the R&D losses on drugs that don't work with the drugs that do. The ratio is like 20/1.

Its a similar, but not quite as extreme condition in my field of engineering design. I spend lots of time and money on test equipment and programming, so when I sell a customer a product for $400,000 that has $40,000 worth of electronics in it, I'm trying to recoup my costs of development, and account for the ideas that didn't turn out to be as efficient as necessary. Besides, my customer gets a damn good product from me, so its worth it to him.

$

SAScrub 03-19-07 04:56 PM

That's why the #2 at Whataburger is so expensive. I mean, with over 36,000 ways to make a burger, you have to make up the costs somewhere.

Jason R 03-19-07 05:03 PM

Screw you Walmart, I just got back from Mexico!

Jules 03-19-07 11:36 PM

Quote:

Originally Posted by Jason R (Post 1059061)
Screw you Walmart, I just got back from Mexico!


It wasn't Walmart - it's Walgreens.

bnwhuxley 03-20-07 01:14 AM

Quote:

Originally Posted by Money4Nothing (Post 1059045)
:word

Drugs cost so much because the R&D overhead on drug development is insanely high. Drug companies have to recoup the R&D losses on drugs that don't work with the drugs that do. The ratio is like 20/1.

Its a similar, but not quite as extreme condition in my field of engineering design. I spend lots of time and money on test equipment and programming, so when I sell a customer a product for $400,000 that has $40,000 worth of electronics in it, I'm trying to recoup my costs of development, and account for the ideas that didn't turn out to be as efficient as necessary. Besides, my customer gets a damn good product from me, so its worth it to him.

$

Not quite the same.

The cost of advertising in the Pharmaceuticals industry is far more than that spent on R&D.

At the end of the day, the preceding post states all the terrible pitfalls besetting the industry but in the end their returns are no less than firms in other industries. Based on the volume of sales, these are humongous companies. No sympathy for them.

Money4Nothing 03-20-07 08:59 AM

Quote:

Originally Posted by bnwhuxley (Post 1059182)
Not quite the same.

The cost of advertising in the Pharmaceuticals industry is far more than that spent on R&D.

At the end of the day, the preceding post states all the terrible pitfalls besetting the industry but in the end their returns are no less than firms in other industries. Based on the volume of sales, these are humongous companies. No sympathy for them.

Its more the same than you realize. I work in the oil and gas industry, and my company's profit margin easily rivals that of many pharmaceutical companies.

$

cheesehead4spurs 03-20-07 02:26 PM

Quote:

Originally Posted by Money4Nothing (Post 1059253)
Its more the same than you realize. I work in the oil and gas industry, and my company's profit margin easily rivals that of many pharmaceutical companies.

$

TSK TSK, $. And you can't afford to take Mom with you to Argentina? :laugh :laugh :laugh


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