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Culture War Roundup for the week of July 10, 2023

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Some pretty impressive news: YouTuber and author John Green, known for his channel vlogbrothers and for being one of the founders of the educational channel Crash Course, as well his his books such as the Fault in Our Stars, recently made a video advocating that pharmaceutical company Johnson & Johnson shouldn't extend their patent on the drug bedaquiline that's used to treat tuberculosis. It's used to treat millions, and saves the lives of many. But it is fairly expensive. And his video and call for his fanbase to bombard Johnson & Johnson to stop worked! They did still extend the patent, but they've allowed for the sale of generics in low and middle income countries that would otherwise struggle to afford it. This is quite possibly the single most influential campaign from an internet influencer ever in terms of lives saved.

The original video: https://youtube.com/watch?v=tMhgw5SW0h4

It isn’t uncommon for drug companies to sell at a much lower price on patent drugs to low income countries.

Many drugs (at least historically) have a very low marginal cost but a reasonably large average cost due to large costs associated with R&D. The holy grail in such situations is price discrimination. You want to sell at a high price to people who are willing to pay a high price but at closer to the marginal cost people who won’t pay the high price.

Selling at a lower cost to low income countries is one way to price discriminate.

At least in India, for high impact drugs, the government explicitly tells foreign manufacturers that they have the choice to drop local prices to bearable levels, or the drug in question will simply be reverse engineered and sold as a generic.