EpiPens aren’t part of a free market at all. People don’t know what a truly free market looks like anymore-so they think the US has a free market when it really doesn’t. All medical markets are extremely regulated by the US government. EpiPen has a regulated monopoly. It’s impossible to compete.
This is why the cost of innovation is so high in the medical startup community. It’s also why we are seeing increasing costs to innovation in sectors like Fin Tech. The regulatory hurdles are massive and costly. Don’t believe me, see how expensive it is to get a bank charter and operate a bank, or start an exchange. It’s a painfully slow and expensive government process.
There are two ironies in this story. The first is political. The CEO of EpiPen is none other than Democratic Senator Joe Manchin’s daughter. She has contributed greatly to the Clinton Foundation.
The other irony is that the larger government gets, the more advantageous it is for big corporations to lobby the government to put in place regulations that stop competition. Most of the people I know that favor big government abhor all the money that has come into politics in the last 20 years-yet it’s the larger government that they advocate for that is the cause of it.