Big Pharma

Over at Freakonomics they have a good discussion about big pharma going on. Read the whole thing. It is worth it. A small teaser.

Generic Augmentin (875mg #20)
$31.10 (Costco)
$65.59 (CVS, Houston)
$75.59 (CVS, L.A.)
$69.99 (Walgreens, Houston)
$84.99 (Walgreens, N.Y.)
$89.99 (Walgreens, L.A.)

Generic Zocor (40mg #90)
$11.66 (Costco)
$164.99 (CVS, Houston)
$180.99 (CVS, L.A.)
$194.19 (Walgreens, Houston)
$221.89 (Walgreens, N.Y.)
$194.19 (Walgreens, L.A.)

When I show these prices to my patients, their reaction is always the same: “How can they do this?” The answer, of course, is: “Because they can.”

Yes, because they can. That sums up conservative economics quite well.