"The Trouble with Cheap Drugs"

Economist.com | The pharmaceutical industry discusses the larger effects of European efforts to bargan down the prices of drugs, suggesting that as a result the development of new pharmaceuticals is moving to the United States, and that the financial savings on prescription drugs may be more than offset by the economic costs of the movement of the industry.

Interesting tid bits:

"A decade ago, Europe and America each spent roughly $10 billion a year on drug R&D. Now, America spends almost $30 billion annually, and Europe a little more than $20 billion. A growing number of firms now base their R&D efforts in America."

"America created 42% more high-value pharmaceutical jobs in 1999-2001, and the trend is continuing. In 1992 the global drugs industry made profits of $60 billion, less than half of which were in America. In 2002, industry profits were $121 billion— 60% generated in America."