> Every country will attempt to negotiate the cheapest price they can get. Even so, drug prices across Europe vary widely by country. And there are powerful European pharmaceutical companies[1] who naturally resist price discounts or cheaper alternatives
The only reason those countries are able to "negotiate" low prices is that the US is a much larger market and doesn't fix prices, so they can simply mark up prices in the US to make up the difference.
Every single one of those European pharmaceutical companies you mentioned? They make the bulk of their revenue in the US market, even though Europe is more than twice the size of the US. That's why half the R&D done in the entire world is done in the US, and a large portion of the R&D done elsewhere is still funded by revenue generated from the US market.
The only reason those countries are able to "negotiate" low prices is that the US is a much larger market and doesn't fix prices, so they can simply mark up prices in the US to make up the difference.
Every single one of those European pharmaceutical companies you mentioned? They make the bulk of their revenue in the US market, even though Europe is more than twice the size of the US. That's why half the R&D done in the entire world is done in the US, and a large portion of the R&D done elsewhere is still funded by revenue generated from the US market.