The problem with this argument is that pharmaceutical companies are private businesses trying to make a profit, not charities. If it were truly unprofitable to sell drugs in, say, Canada or France, pharmaceutical companies would just not sell their drugs in those countries. It is _less_ profitable to sell drugs in those countries than America but still profitable, which is why they still try to capture those markets. If America fixed this imbalance by forcing a lowering of drug prices in the American market, there's no reason to believe that this would cause raising of prices elsewhere. The only way this would be possible is if it were truly unprofitable to sell the drugs elsewhere, which can't be the case since these are corporations not charities. The real impact would be to slow down new drug development, since existing drugs are already profitable to sell everywhere in the world even in countries with more regulation, but if America fixed its market by lowering drug prices for Americans, the total profitability of pharmaceuticals would decrease, decreasing the incentive to create new pharmaceuticals. That's a totally different and very plausible impact. Rising drug prices for existing drugs in other countries is not a plausible impact.
> If it were truly unprofitable to sell drugs in, say, Canada or France, pharmaceutical companies would just not sell their drugs in those countries
You’re confusing capital and operating costs. Once you’ve developed the drug, selling everywhere you can makes sense. When considering whether to develop a drug or invest in something else, America’s biotech market absolutely turns keys. (But not as uniquely as we think. Europe has a thriving R&D market, it’s just directly subsidised.)
So basically if this true, you prove my point. If Americans weren’t paying these high costs then R&D would slow down and the whole world wouldn’t get these drugs.
America subsidizes these drugs for the rest of the world, which does not pay its fair share into R&D costs. If we’re to fix our healthcare system, this kind of thing can’t continue.
I think they are not saying it's unprofitable, but rather that the current government should shape the market so the environment levels more over US vs the rest. (of course please in a laissez-faire change the market style not the bad socialist stuff)
