- Weight-loss drugs such as ozapic and zipbound for a month supply are costing $ 900 to $ 1,500.
- The CEO of Eli Lily said that due to time and money to develop them, the cost was partially.
- David Ricks said that drug manufacturers want to capture a proper part of the value that makes the patent before the end, David Ricks said.
The latest weight -loss drugs, including ozmpic, vegovi, mounjaro and zipbound, have a list of list from $ 900 to $ 1,500 for a month’s supply.
David Ricks, CEO of Maunzaro and CEO of ZapeBound manufacturer Elli Lily, explained why these drugs are expensive this week on “in good company with Nikolai Tangen” podcast.
1. Time and money
Ricks stated that the cost of a new drug is approximately $ 3 billion, it takes about 15 years, and is a high probability to fail.
The boss of the US 10th largest company said that the big cost, long deadline and thin potential for success mean “requires a return to the risk that is about $ 830 billion. The stock increased by 17% in the last one year. Is, and more than 500% since 2019.
Once a drug is approved and used by millions of people, it will often be called for cost-plus pricing, Ricks said. But without the possibility of big profits, “no one would have taken a risk to invent it.”
2. Better window
By the time their latest Wonder drugs are approved and the market is hit, pharma companies have only 10 to 12 years, which are to cash before the end of their patent and the rival is cheap Can produce generic, Ricks said.
Drug pricing reflects a limited time limit, they have to resume their investment, earn sufficient benefits to satisfy shareholders, and offset the cost of many of their failed drugs.
David Ricks is the CEO of Eli Lily, one of the largest companies in America. Michael M. Santiago/Getty Images
3. Extensive profit
When a drug patent is finished, other drug manufacturers quickly roll the generic at a fraction of the price, prevent the inventor from earning a monopoly profit, but makes the drug almost accessible to anyone who needs it. Is.
“One of the great gifts of our industry is that whatever we inventions are zero for us and goes into infinity for society because generic drugs are such a big thing,” Ricks said.
Ricks pointed to Prosec, which was introduced by Eli Lily in the late 1980s. He said that antidepressant is sold worldwide and is “virtually free” because it costs only four or five cents in major markets. He called it a “tremendous gift for society”, and said that his company deserves more credit for those long -term benefits, while his medicines are subject to patents.
4. Proper share
When a new drug reduces the cost for the entire healthcare system, its creators are eligible according to the savings, Ricks said.
He said that a new generation of weight loss drugs has been suggested, which reduces the absence of the worker, results in low hip and knee replacement, and in conditions ranging from alcohol and depression to schizophrenia Can help.
Ricks stated that their effectiveness in a fight like heart disease, liver disease and diabetes may eat 40% of the total health care costs of developed countries.
He said that Ellie Lily’s goal is that “something, not everyone, as all, direct and indirect values we make,” he said.
5. Morality and regulation
Pharma companies can pay the price of their medicines, which can be on the basis of the market, but Ricks said it would be foolish.
“Desperate people can be those who require a drug to survive,” Earth “means” you can get in the price points that are actually too much and perhaps make a short -lived return, but you probably make Either laws will be made or if you are out of business then you can exclude business. Chase forever, “he said.
Ricks stated that his team works with the healthcare system and weighs the financial, scientific and customer approach to ensure that its prices reflect the value of their drugs without inviting exploitative and legal or regulator backlash.