Obama Royal Order #98-Bypasses Congress-Strong Arms Drug Manufacturers

Obamacare has already pinched the pharmaceutical companies to the tune of $4 Billion a year, raising the cost of every prescription you have to buy, and is now FIXING A “DYSFUNCTIONAL MARKETPLACE” that is causing a shortage of 246 drugs!  Your government believes that the drug companies are stockpiling drugs to creat a shortage and drive up prices.  Forget about code dating issues this is not a sound business practice.  How about blaming your government’s policies and regulations that are killing drug companies and driving up prices?  In Michelle Malkin post today, (http://michellemalkin.com/2011/11/04/obamas-drug-shortage-demagoguery/) she quotes Federal and other WH officials as saying:

“If we find out that prices are being driven up because shortages are being made worse by manipulations of companies or distributors,” the White House further threatened, “agencies will be empowered to stop those practices. And the FDA and the Department of Justice will be investigating any kinds of abuses that would lead to drug shortages.”

I have one friend in the drug industry that told me a few years back that his company was not selling a certain vaccine in the US any longer because the government pegged the per dose price at $6.00, which was close to break even, but the unlimited liability on the back-end via lawsuits made the risk of producing the vaccine not worth the chance. 

You should know what this government is doing behind your back, and without the sanctions of Constitutional Legislation being enacted.  We have been able to take for granted the availability of healthcare and medications but that appears to be disappearing from our national landscape.  Obama and Obamacare have successfully made drug companies evil in the eyes of a lot of Americans to throw the focus off of what Obama and Obamacare is actually doing to our very lives.  For seniors, you better get away from AARP and take a look at AMAC, (Association of American Citizens).  AARP gets $50M in grant funding from Obama to support Obamacare and whatever Obama decides to do with Medicare.  The more Obama takes out of Medicare Part A and B, the more insurance you will have to buy from AARP!!!  AMAC is a competitor to AARP and is fighting Obamacare, Medicare Cuts, and the taxing of Social Security Benefits that have already been taxed once…Make the switch now!  (http://www.amac.us/)  But I digress…

Obama has now issued his Royal Edict #98 to Fix the Problem the Big Bad Drug Companies are Causing.  How? 

Add more Government Employees to the dysfunctional FDA to monitor drug shortages and make sure that drug companies warn the government of pending shortages, 6 months before they occur! 

What is causing the shortages?  Government Intervention into the marketplace that is creating the shortages!

  • Price Controls:  One of the major reasons for a dysfunctional marketplace are dysfunctional governmental price controls starting back with George Bush in 2005 and perpetuated by Obama and exacerbated by Obamacare.  In spite of the horrible market disruptions caused by the Republican Nixon Regime’s price controls in the 70’s, a Republican Bush slapped a 6% price increase ceiling on cancer drugs that are expensive to get to market.  Guess which drugs are now in short supply?  You guessed it, Cancer Drugs are in the mix.  Obama has quadrupled down on the price-fixing by forcing Drug Companies to rebate to hospitals and clinics almost 25% of the price of non-generic and 13% of generic drugs purchase for qualifying outpatient care.  Price Controls skew the marketplace by extracting profits out of the sales of products.  If you have product A and Product B, and Product B hit a price ceiling and returns lower or no profits, then the company has to drop Product B or risk hurting their bottom line and losing stockholders.  It is only when the market can react freely to supply and demand are the consumers protected from price shortages.
  • DEA Cross Departmental Regulations:  You may think that the FDA is the agency that sets all of the regulations and monitoring for drug companies.  Nope!  The Drug Enforcement Agency (DEA) also has their paws in the soup.  If you take OTC drugs for flu and cold relief that contain amphetamines, you have gone through the procedure of having to go up to a crowded pharmacy checkout, ask for a product by name, then show your driver’s license and sign a federal register to prove that you purchased the product.  (You could get heroin off of the street easier)  Then you go home and wonder if DEA agents are going to break your door down since you bought two boxes this month! You may think that this does not hurt drug sales but you are dead wrong.  After working retail merchandising for over 35 years, I can tell you that any product that has to be kept behind the counter drops 30-40% of its sales potential.  First, many people do not know that the product is even behind the counter, if they do not see it on the regular shelf they assume it is not carried by the store; second, often there is a line that the shopper does not want to navigate just to see if the product is even behind the counter.  Third, some consumers feel intimidated by buying a product that you have to be strip searched to buy!   The lack of sales drives down profitability and thus the long-term manufacturing support for the product.  Also, retailers only have so much space to shelve products and they charge manufacturers for “slotting allowances” (throw back to Richard Nixon’s price controls) which are substantial.  Slow turn items cannot recoup the slotting fees and manufacturers are reluctant to put out products that have to be hidden from consumers.  Do you think government officials ever conducted “Shopper Insight” studies to see the impact of their policies.  Yea, Right!
  • EPA Cross Departmental Regulations: Just recently, the EPA is requiring that inexpensive, OTC asthma inhalers be pulled out of the market because they use a CFC propellent that these morons think will eat the Ozone layer in our atmosphere!  So, you get by the FDA, and DEA leaves you alone, then the Greenies from the EPA march in.  If you are an asthma sufferer, breathing is a bit more important than whether a bunch of long-hairs think, but have yet to prove, that the Ozone Layer will be destroyed and they will get skin cancer from going out into the sun and be singed by UV Rays!  Forget the poor consumers who had a low-cost inhaler to use but now will have to go to a much more expensive (4x) prescription inhaler…
  • FDA Incompetence:  Not to be outdone by the DEA, the FDA has some of the most bizarre rules and procedures for drug certification. They are lengthy, costly, and drive up the cost of drugs, especially drugs that are merely derivatives of existing drugs.  Then, there is never a certainty that the FDA won’t precipitously pull the drug off of the market.  So, a drug manufacturer could go through 6-8 years of development, testing and certification only to have drug pulled after one or two years in the market.  The worse thing is that there is no liability protection for the drug company from lawsuits for products that have been “FDA Approved”.  There are also no Tort limits to the lawsuits thus requiring drug companies to reserve huge sums in case lawsuits result from a release of one of their products. 

Obama is setting the final stage where you will be willing to beg the government and him to provide you with healthcare.  Meanwhile he will point his crooked finger at drug companies, doctors, hospitals, clinics and insurance companies until he drives them all into submission.  Then you will be “GRATEFUL” to have the Almighty Obama grant you morphine to dull the pain of your terminal cancer.  OOPS, morphine is in short supply so you can only have a half a dose.

This nation is no longer the United States of America.  It is the Socialist State of America and is operating under a pseudo Monarchy with Obama as King.  Had enough yet?  I have.

RD Pierini

Hat Tips:

Michelle Malkin:  http://michellemalkin.com/2011/11/04/obamas-drug-shortage-demagoguery/

Pharmaceutical Networking: http://www.pharmaceutical-networking.com/us-president-set-to-announce-executive-order-to-tackle-drug-shortages/

AMAC:  http://www.amac.us/



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