| PeterB 2005-09-28, 9:42 am |
|
Mark Probert wrote:
> PeterB wrote:
>
> What an utterly moroinc thing to say.
>
> It is correct, however. See if Rich
>
>
> Profits are one thing...but is it a viable return on their investment?
> Putting in X dollars to make .001X is not the same as putting in the
> smae money to make .01X.
If Merck's returns weren't viable, they wouldn't continue to
manufacture vaccine. Besides, the question is whether vaccine
manufacture is driven primarily by the need for profits, which of
course they are. So, whether the object of the drug makers is to
maintain returns they are happy with, or to boost them further, isn't
relevant to the distribution of vaccine despite the absence of
randomized, controlled, and long-term studies proving they work.
> And you don't jetison a profitable business unless
>
> Yes, you do so in some cases.
But they haven't.
> Vaccines are, at best, marginably
> profitable. I dumped a client a few years back as they were very
> demanding, and, when I calculated the time I was spending justifying my
> actions and bills, the "profit" was nearly gone. Dumping them also had
> the side effect of a dramatic drop in stress. I was able to spend more
> time on other clients who did not play absurd games and made up the
> difference.
>
> Interestingly, I was not the only one who dropped them, and they asked
> to come back around a year ago. No one was interested and they now do
> the service I was providing in house, at an astronomically higher price.
Nice anecdotal observations; but not relevant.
>
>
> Margins are the name of the game. If two itens cost X dollars to
> manufacture and one makes 50% more for them, guess which product stays
> and the other goes?
That's only true when the product with greater overhead cannabolizes
the other, which happens rarely. As for vaccines, nothing else claims
to do what they do, consequently those revenues can't be offset. If
indeed vaccine is becoming a liability for the drug makers on the basis
of weak margins, it only shows they have painted themselves into a
corner by failing to provide adequate forensic virology supporting
adoption of vaccine to the public.
>
> No company would be selling more than one
>
> When there are numerous products, and pharmaceutical manufacturers often
> have many, marginally profitable one go when they need the cash flow for
> other projects.
Only when a product is cannabolizing another, otherwise your
incremental revenue generators are positive to cash flow, if nothing
else.
PeterB
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