In today’s New York Times, Sunday January 23rd, it published an article on the Obama administration starting a laboratory to develop new drugs. http://www.nytimes.com/2011/01/23/health/policy/23drug.html.
The chief complaint in the article is that the pipeline of new drugs has been steadily in decline and that the government needed to step in.
If you look at the problem and its’ root causes, the reason why many pharma companies are doing less research is the FDA approval process for bringing a new drug to market makes it financially unprofitable that unless it is a sure-fire home run and there are very few of those, no company can make a profit…and the government doesn’t care about making a profit or the complex regulatory environment since that creates more government. So the government now needs to step in and fix the problem it created by competing with, and ultimately eliminating the research in the private sector.
Haven’t we seen this story unfold before? Didn’t the government NEED to step in and FIX the mortgage problem because the banks weren’t loaning enough money. As a result, they created Freddie and Fannie, who basically now do ALL mortgages and were used in the social engineering project that brought down the economy, to fix the problem.
I say this is absurd! Fix the problems of the regulatory approval process at the FDA, which in and or itself is dubious constitutionally, and let the private secor do what it is designed to do. If there are areas where there is need for new drugs and never will have a profitable business model, then let the World Bank fund global research projects and let the Universities from around the world help solve the problem.
This far overreaches the mission of our government as defined by the United States Constitution. Eliminate the obstacles to the private sector being successful and if it is a global problem, let global resources solve it.
My 2 cents!