Re:Congressman calls for probe into Valeant’s pricing of lea...
by refurb on Sunday October 23, 2016 @01:13PM
(#12774360)
Here is a possible scenario (not saying it applies here)...
There are substantial fixed costs for manufacturing a drug. The more volume you sell, the lower the total cost per unit since fixed costs get spread across a greater number of units.
As volume drops, profitability eventually goes negative, so the price needs to rise for that drug to stay on the market.
There are substantial fixed costs for manufacturing a drug. The more volume you sell, the lower the total cost per unit since fixed costs get spread across a greater number of units.
As volume drops, profitability eventually goes negative, so the price needs to rise for that drug to stay on the market.