What are generics drugs? Well, in the pharmaceutical world generics have a popularity of being the cheaper version of brand named drugs. Generic drugs are medications that provide the consumer with the same equivalent quality of care as that of brand name drugs, at a much lower price. These drugs not only make medicine affordable but also have a low cost of production. Unlike the producer of the original brand name drug, the generic drug producer does not have to undergo comprehensive research, sacrifice billions of dollars or time investigating methods for the invention of any particular drug. Instead, after the patent of the original any drug expires, the generic producer can simply mass produce the same bioequivalent medicine and supply it to distributors at a cheaper rate while still generating profits. Although generic drugs have a significant low cost of production their market prices have recently soared to a near equivalent cost of brand named drugs and this has become a growing concern among many consumers. The effects of price spikes on generic medications have become evident through the pharmaceutical system and immediate action from the F.D.A is now required to resolve this issue.
One of the main growing concerns among consumers due to the price increase on generic medication is insurance. It is no surprise that this issue is impacting both the patient and individual pharmacies. According to the National Community Pharmacist Association, patients who are covered by Medicare and Medicaid “are declining medications due to increased co-pays” (Alexandria, NCPA). Patients who now have to pay additional money out of their pocket on premiums all the sudden are directly holding insurance companies at fault instead of the ph...
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...e profit motive pharmaceutical industries. As a result, Bloomberg economic data has proven the three big companies; Teva, Actais, and Mylan have generated an increase in revenue. These companies grew by 10 percent starting from 34 percent in 2007 to a record 44 percent last year. The rise in generic medication costs and malpractices has become a new norm in the drug industry will continue to worsen until federal regulations are strictly enforced.
The bottom line is the F.D.A should resolve the issues associated with the rise in generic medication by supporting new generic competitors and wiping out malpractices. Promoting growth and allowing more competition to produce generics has proven to be beneficial. It allows a stable market from which consumers can afford to buy generic medications. More competition is the innovative standard for the free market economy.
In some instances, the pharmaceutical industry in the United States misleads both the public and medical professionals by participating in acts of both deceptive marketing practices and bribery, and therefore does not act within the best interests of the consumers. In America today, many people are in need of medical help. In fact,the Federal Trade Commission estimates that 75% of the population complain of physical problems (Federal Trade Commission 9). They complain, for example, of fatigue, colds, headaches, and countless other "ailments." When these symptoms strike, 65% purchase over-the-counter, or OTC, drugs.
...ll help the company in selling generic drugs and provide affordable medications to its customer base.
Many businesses that achieve great success become greedy and want more. Pharmaceutical companies, such as Turing, have been overpricing life-saving
Why do consumers purchase specific drugs for various ailments, sicknesses or diseases they might have? Why do physicians prescribe certain drugs over competitive drugs that may be available to the public? Why is it that most of us can easily name specific drugs that fit the many ailments of today’s society? On the surface the answer might be as simple as good TV advertising or radio commercials or even internet adds. The truth of matter is the major pharmaceutical manufacturers own the patents on these drugs and this gives them all of the marketing budget and muscle they need to promote the drug and control the pricing. The incentives for larger pharmaceutical companies are very enticing and as a result, they don’t mind spending the time in clinical trials and patent courts to get their drugs approved. Some will even get patents on the process by which the drug is manufactured, ensuring that no competitor can steal the drug or the process. This protects their large financial investment and nearly guarantees a large return for their investors. Many consumer rights groups claim this is nothing more than legalizing monopolies for the biggest manufacturers.
In America, it has become a battle to earn a high paying job to cope with the expenses of a typical American. It has become even more of a battle for some people to afford medical prescriptions to keep healthy. Health becomes a crucial issue when discussed among people. No matter what, at one point or another, everyone is going to stand as a victim of the pharmaceutical industry. The bottom line is Americans are paying excessive amounts of money for medical prescriptions. Health-Care spending in the U.S. rose a stunning 9.3% in 2002, which is the greatest increase for the past eleven years. (Steele 46) Many pharmaceutical companies are robbing their clients by charging extreme rates for their products.
While many low-income families obtain prescription coverage through government programs and may receive relatively generous drug benefits, those who have no prescription coverage are required to pay the full retail price charged at their pharmacies. Because the cash-paying customers are
Has anyone noticed that there seems to be a drugstore being built on every corner these days? Revco, Walgreens, and Rite Aid seem to be just a few of the drug store chains that are expanding. One has to wonder if this has anything to do with the possibility of including medicine under coverage by healthcare systems. This means that they may become part of a capitated payment system to the pharmaceutical providers. "By capitation, we mean a prospective payment to physicians or providers - either individually or as a group - of a fixed amount of money to care for each patient (Pearson, 1998)." In other words, every physician is provided a set sum of money whether they see any patients or not and every pharmacy would be given money whether they prescribe any drugs or not. Drug costs will rise.
Prescription drug prices rose three times faster than inflation in the decade between 1981 and 1991, making the pharmaceutical industry the nation's most profitable business. Prescription drugs even exceeded the rapidly rising inflation rate for all other medical services. They now represent at least 10% of all the medical costs in the United States.1
The point at which they decide to produce will rest on their own adversity of revenue, risk and effort. The company also needs to know the price elasticity of the curve: the greater the price elasticity, the more a company such as Pfizer will struggle to establish high prices and a high volume. Although monopolies appear damaging at times, there are arguments that they are an advantage to society. Monopolies in the pharmaceutical industry drive companies to pursue research and development (R&D) efforts to gain new patents. According to a 1992 study, among the 24 U.S. Industry groups, pharmaceuticals dedicated 16.6% of their amounts to basic research, while all other industries averaged at 5.3% (Sherer 1307).
There are three issues when it comes to the health care cost rising. The first is the rising cost in prescription drugs. The second area of rising cost is the increased technologies when it comes to the medical industry. The third problem is the aging population. Prescription drugs are the area of the fastest growing health care expense, and it is projected to grow at 20 to 30 percent each year over the next several years. There are many newer, more expensive drugs on the market, and the use of these prescriptions is exploding. In addition, with so much television advertising, many consumers ask their doctors for expensive, brand name drugs when there may actually be a generic drug that works just as well.
Maris, D. (2012) ‘What’s Really Driving the Pharma M&A Frenzy’, Forbes, 27 April [Online]. Available at: http://www.forbes.com/sites/davidmaris/2012/04/27/pharma-feeding-frenzy/ (Accessed at: 15 December 2013)
10. Collis, David, and Troy Smith. "Strategy in the Twenty-First Century Pharmaceutical Industry:Merck&Co. and Pfizer Inc." Harvard Business School, 2007: 8-12.
The lives of a lot of Canadians are highly dependent on the prescription drugs that they take. Pharmaceuticals have become a part of almost everyone’s day-to-day life. However, over the past thirty years or so there have been dramatic increases in both the demand for drugs and their cost. On February 28, 2013, Steve Morgan published his article entitled “Canadians Are Over-Paying for Pharmaceuticals Year After Year” in the Huffington Post. He addressed the cons of a multi-payer system and talked about how a single-payer system would be beneficial to the Canadian health care system. This paper will address the reasons for which Canadians are paying an excessive amount for pharmaceuticals. Comparisons with various countries abroad and strategies to reduce drug costs will also be discussed.
The segment of drug industry where Teva had to come up with innovative drugs demands to invest high capital on R&D that was in billions for a single drug could potentially lower the growth and revenues for Teva and could push the company in serious troubles.
Pharmaceutical patents are patents for inventions within the pharmaceutical industry. Patents give exclusive rights for an invention for a product or a process of making a product [1]. There are many aspects to patents in the pharmaceutical industry that are both pros and cons; it just depends on what industry you are in. Pharmaceutical companies take out patents so they can regulate the market and restrict competition from other companies. By obtaining patents pharmaceutical companies also attract investment. In addition to this pharmaceutical companies can also regulate the price of the drug as they will be the only company selling that drug. However these aspects of patents can adversely affect the generics industry. The generics industry cannot make or sell drugs that are patented but once a patent licence expires, both the generics industry and the WHO see increased benefits as drugs become more widely available around the world (i.e. developing countries) at a lower price. Here we will discuss the pros and cons of patents from the point of view of the pharmaceutical industry, generics industry and the WHO.