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DR. RICHARD D. KOCUR: A PRESCRIPTION FOR DISASTER |
Yesterday, the CEO of a pharmaceutical company appeared before a House committee to answer questions about price increases on a product—the EpiPen, an auto-injection device used to treat potentially fatal allergic reactions. In Congress, a recent bill seeks to force drug manufactures to rationalize any price increase over 10 percent to the federal government. But is legislation the best solution? Is this a bill that could bring the entire industry dangerously close to government price controls? In this article, Dr. Richard D. Kocur argues that there is an easier fix. He writes, “As any businessperson knows, if you price a product too far above the cost of production you’re inviting competition to enter the market, thereby offering consumers a potentially lower-priced alternative.”
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