Questcor raised the price of an old drug from $40 to almost $40,000,
and is accused of bribing doctors to prescribe it at that price.
Mallinckrodt, which bought Questcor, now brings in a billion dollars a
year from that drug.
Mallinckrodt expects to pay $15 million —
5
days' sales — to get off the hook for that accusation.
It is too easy for the individuals involved to avoid prosecution and
punishment. But the root of this problem is that there is too much
concentration, and insufficient competition, in making generic drugs
for the US.
I suspect this has to do with the
offshoring
of most of that production.