In recent years’ health reform has been a driving force in the United States political system. If you watch the news you will undoughtabley hear how citizens, the government, or the economy is or might be effected by some sort of change in medical regulation. One of these hot topic issues is the cost of prescription drugs. Every major drug market besides the United States regulates the price of drugs in some way (Abbott and Vernon). By the United states not doing so many believes it opens consumers up to be exploited by large pharmaceuticals companies. Other believe regulating drug prices limits investment, innovation, and competition in the pharmaceutical industry. In many ways both views are correct yet the later may have more long term lasting For a drug to get to market it must go through several stages of research and development (Abbott and Vernon). Starting with discovery research, preclinical testing on animals, three phases of clinical trials on humans, and finally FDA (Food and Drug Administration) approval (Abbott and Vernon). Out of several thousands of drugs only a few will make it to the FDA approval stage (Abbott and Vernon). Testing is a highly regulated, time consuming, and expensive process. From beginning to end the process can take fifteen years and less than one of five compounds will make it to market where it is still not guaranteed to succeed (Abbott and With the low success rated private firms invest millions into several produces. When a drug does make it too market and is successful companies need to make-up money spent in development as well as the cost of drugs which did not make it to market. After all investments are taken care of there is still the need for profit. Some are concerned if the United States government implements control over prescription drug cost then private firms will be less motivated to invest in pharmaceuticals development of our fear they would not make their investment back. This would supply pharmaceutical companies with less finances for the research and development process. According to the information collected by Abbott and Vernon a drop in the price of pharmaceuticals would result in significant loss in investment of research and development (Abbott and Vernon). If drug cost were to drop 40-45% the amount of a drug to move from animal testing to human clinics would decrease by 50-60% (Abbott and Vernon). With such high risk and low reward pharmaceutical companies will likely stop or slow research on new technologies and compounds. In 1969 Canada imposed regulations on drug prices (Weidenbaum). After the regulations were imposed there was a decline in new drugs being created (Weidenbaum). This change in the pharmaceutical
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.
In Melody Peterson’s “Our Daily Meds” , the history of marketing and advertising in the pharmaceutical industry is explored. The first chapter of the book, entitled “Creating disease”, focuses on how major pharmaceutical companies successfully create new ailments that members of the public believe exist. According to Peterson, the success that these drug manufacturers have experienced can be attributed to the malleability of disease, the use of influencial people to promote new drugs and the efficient usage of media outlets.
... (2013) IMS health study points to a declining cost curve for U.S. medicines in 2012 Retrieved from http://www.imshealth.com/portal/site/ims/menuitem.d248e29c86589c9c30e81c033208c22a/?vgnextoid=8659cf4add48e310VgnVCM10000076192ca2RCRD&vgnextchannel=437879d7f269e210VgnVCM10000071812ca2RCRD&vgnextfmt=default
In conclusion, pharmaceutical companies are extremely edacious and cold-blooded. Their profits numbers in the billion’s range while seniors are struggling to afford their prescribed drugs to survive. The pharmaceutical industry is strongly against Americans getting their prescriptions from Canada. Yet these people cannot help it; they are not financially secure to afford the drugs sold in America. The U.S. Government tries to isolate itself from the problem in order to make money from the taxes of prescriptions. However, almost every other country has some type of control over their pharmaceutical companies’ prices. In the future, with more and more drugs developed, only more and more money is going to be in need by the pharmaceutical industry. So unless something can be done soon, this war on drugs is only going to climb uphill. Yet how could these top-paid personnel understand what it feels like to be unable to afford prescription drugs in order to maintain a healthy body or even to stay alive? If there was an answer to that question, the dilemma of overpriced drugs might have a solution.
Why are the prices so high? Some critics of the drug companies argue that the larger firms are ripping off the American public, are dishonest and, in some cases, unsafe. On the other hand, there are health care workers such as doctors and their supporters who claim that research and testing for drugs costs money. This supposedly justifies their prices for their products. Also, as an argument to their side, they say that their practice is a benefit to the improvement to mankind. It is a life saving business, but are these prices justified? As one can see, this is a very important issue in medicine today. It affects everyone involved with medicine, which is much of the American public. It also affects the physicians and drug makers.
From 1970 to 1998, the inflation-adjusted revenue of major pharmaceutical companies more than quadrupled to $81 billion, 24 percent of that from drugs affecting the central nervous system and sense organs. Sales of herbal medicines now exceed $4 billion a year. Meanwhile the war on Other drugs escalated dramatically. Since 1970 the federal antidrug budget has risen 3,700 percent and now exceeds $17 billion. More than one and half million people are arrested on drug charges each year, and 400,000 are now in prison. These numbers are just a window into an obvious truth: We take more drugs and reward those who supply them. We punish more people for taking drugs and especially punish those who supply them. On the surface, there is no conflict...The drug wars and the drug boom are interrelated, of the same body. The hostility and veneration, the punishment and profits, these come from the same beliefs and the same mistakes.
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).
The United States is spending way more than any other developed country in the drug marketplace despite provisions made by Medicare through the Affordable Care Act. President Donald Trump is trying to fulfill his campaign promise of breaking monopolies created by multinational drug companies by setting a benchmark and creating policies that would drastically reduce the costs of prescription drugs in the United States. Shady pricing and removal of low-cost drugs from reaching the low-income patients who are uninsured have made prescription drugs unaffordable for them. These drugs are deliberately kept out of the market by multinational pharmaceutical companies in order to drive up monopolies and ending up causing the U.S a lot of
a drug gets the CDER approval, the drug is on the market as soon as the firm gets its production
(Frank). That is insanely high and something needs to be done. There are other issues such as the time it takes to research and develop a new drug and the cost it takes. To develop a new drug into the market place it takes on average 10 to 12 years. That is exactly why drug companies do not rush to being in a new drug to jack up the prices of the old one and play into the market place.
These medications exist in a natural nature where pharmaceutical companies cannot control or patent them. This means companies do not waste time and money to verify if they are actually competent and this will be helpful for public funding. Companies act too massive and way too profitable when creating a drug. Once a pharmaceutical company develops a new drug, it obtains a patent, which gives it a monopoly over the production and sale of the drug for a period of time. If the company does not patent a drug, then it's not profitable.
Other companies cannot replicate the drug and therefore they are forced to either wait until the patent expires or they must find an alternative drug that carries out the same purpose.... ... middle of paper ... ... It is clear to see that there are many pros and cons to patents in the pharmaceutical industry.
Pharmaceutical drugs are more costly because it needs an approval from the Food and Drug Administration (FDA). Manufacturers of drugs spend a lot of money for research to be certain of how safe, accurate and effective their drugs may be especially to the illness it is suited for (The Herbal Drugstore 11-14-15).
The FDA guarantees that the drug will be safe, but there will be more and more regulations as more competitors join in. Recently the Fed has announced to increase interest rate which will lower the consumer spending and impact the sales of all industries including the pharmaceutical industry.
The validation of medicine has been an issue in politics for a long time. Many people think that the validation of drugs will give the government more control and there will be less crime on the streets. Another issue is that the government will be able to profit money off the drugs and be able to control prices and what age you will have to be to be able to buy the drug.