Subject: RE: mandatory patent auctions
From: <>
Date: Sat, 7 Oct 2006 18:05:46 +0900

 Sat, 7 Oct 2006 18:05:46 +0900
Anderson, Kelly writes:

 > I don't really mind so much that drug prices are low in the Sudan.
 > Replace "subequitorial Africa" with "Canada" or "France", and I think
 > your argument is less sound.

The argument remains sound.  All that's happening is that Canada and
France are transferring profit from the drug company to their citizens
by capping prices.  There still is no subsidy from U.S. consumers to
foreign consumers, just a (small) probability that some drugs don't
get marketed because the drug company doesn't expect enough profits
from the U.S. to cover its development costs.

 > And, if they are selling drugs for the marginal cost of production in

 > Africa, then their profits are not related to what they are doing in

 > Africa.

I doubt that they are; they are selling at higher than marginal cost
in all countries (at least for some of their products) or they
wouldn't bother to sell.