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Tuesday, September 11, 2007

Sanofi proves exactly why the US government should negotiate prices

"Letting the market decide" means that when you are a power-buyer (such as the US government) you use that power to negotiate quantity pricing and receive advantageous terms. Bush has a spotty track record with every business he has ever touched so he has no idea what "the market" even means, but in the real world you use volume to dictate pricing and to lower it as much as possible. It's taxpayer money, so the GOP political leaders ought to be taking that into consideration once in a while. Taxpayer money isn't supposed to be a slush fund where you help friends in industry. Setting prices - as is normal when doing business - and then managing the process is common sense business but for some reason it seems to be considered unnecessary with the GOP.

French pharmaceutical giant Sanofi-Aventis has agreed to pay 190 million dollars to settle a probe into whether it overcharged US government health care programs, the government and company said Monday.

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