On Thu, 13 Mar 2008 10:56:27 +0700, Bruce in Bangkok
wrote:
snip
But the point of the discussion was my trying to illustrate my
assertion that costs in the U.S. are too high. I used the example of
Zestril simply to point out that
snip
============
Prices, costs, and profits are three separate, although related,
topics.

Given the amount of automation, and the low labor content of
almost all [production] pharmaceuticals, it is difficult for me
to see how the cost of labor has much [actual] affect on the
retail price, let alone 50% more. The allocation of G&A,
marketing, and executive bonus charges is something else.

On the other hand, the opportunity for "transfer pricing" and tax
evasion may have a big impact.

While not exactly tax evasion, corporations do not pay federal
[US] income tax on profits generated by operations in Puerto Rico
until those profits are "repatriated" to the US. Given the huge
expansion of off-shore operations, there is little need to ever
repatriate the profits, and this provides yet another tax payer
subsidized incentive for off-shore production and the elimination
of additional US jobs.


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).