Canadian’s pay too much for prescription generic drugs, which are more in abundance and competitive, over brand name drugs. Generic drug prices are inflated; their rates are set at high levels, by the provinces. Canada has its own drug makers, which produce generic drugs to international countries. Generic drugs are cheaper, the time required to develop a generic is shorter and the costs are much lower to produce, than that of the brand name medicine. Ontario’s Drug Benefit Program prevents consumers, from buying drugs at competitive rates. Our Provincial Government sets rates that are fixed, for Generic Drugs the rate is about 25% of the cost of brand name drugs. Pharmacies can charge the maximum price allowed, under the Ontario Drug Benefit Program. As a result, the consumer does not benefit from any price discounts, produced by competing generic drug companies, the pharmacies keep these profits. In Canada, generic drug manufacturers are competing on prices, by offering retail pharmacies bulk rebates, in exchange for full distribution rights. Generic pharmaceuticals save Canada’s Health Care system money. They can sell their medications for a lower price, than their brand name counterparts and help make the heath system more sustainable. The consumer could benefit and save money through a market sales deal, that pharmacies receive but, don’t because the Provincial Government has a fixed price, on the costs of generic drugs. Provincial Governments should not interfere with prescription drug markets, with inefficient reimbursement schemes and price regulations. (Skinner, 2010), (Connell, 2010)
This also causes generic brands to rise in cost. According to IMS Health, pharmaceutical information companies, the price for generic drugs are increasing almost twice as fast as prices f...
In the U.S., drugs are sold on a free market basis. However, instead of competing against other companies for best-pricing scenarios (bringing lower prices to consumers), pharmaceutical companies price products based on the value to the patient. (How much would you pay to cure your cancer?) This makes baseline prices higher (as much as 80x greater now for drugs purposely kept in short supply, in order to create a higher profit margin) (Ungar). The drug Kalydeco, used for treating cystic fibrosis, costs close to $300,000.00 per year (Werth). Big pharmaceutical companies pay companies not to produce generics of their medications—a process called “Pay for Delay”. Fought by the FTC and ruled against by the Supreme Court, both authorities admit that the SCOTUS’s decision was a symbolic one, and the process is expected to continue (Wyatt). Pharmaceutical companies are re-patenting drugs by repackaging or making minute changes, disallowing them to be released to the generic market. Prices are set dependent on the purchaser. Cheaper prices are give...
The cost of medication in the United States can be very expensive. Finding ways to cut costs is important and necessary to many Americans. Buying generic instead of brand-name drugs is one way to save money. However, not all generic drugs are equal to their brand-name counterpart.
“What I learned from the film was that generic drugs are selling better than the branded medication I assume it is because of the cost, of the branded are too high for consumers in the United States to afford to buy it. In the United States the pharmaceutical company’s go through a strenuous trial before they can get a patent for a medication to sell to the public. They are under strict regulations in the United States by the Federal Food & Drug Administration, they go through clinical trials before they can get a patent for medication to be distributed to the public. It also references the point that weak nations must have access to reasonably priced medications, treatments and vaccines is also creating a huge opportunity such as Africa. Pharmaceutical patent totaling sixty-billion dollars are set to expire in America in 2012. The FDA drug approvals have been in decline, and brand name medications are only 1in 4 pills. The bigger firm will do both thrive and survive in the pharmaceutical arena in health care. None of the most pertinent medicines prescribed will be a brand name in the highest 15 medicines in the America. There was a spending increase in emerging markets, and at least a twenty percent increase is expected in 2020. The sponsor payer model has shifted to the physician prescriber so pricing and market access, due diligence has become a leading issue in the Pharmaceutical decision-making process. Research and development shifts to small venture capital companies will be primary developers of new compounds. Support services network is being outsourced to create leaner more agile pharmaceutical companies. Mergers and acquisitions, eliminating repetitions and obtaining product line replications. In the U.S. alone. 50,000+...
Luigi Sto Domingo 11/10/15 HCA 202 Drug Shortage Despite being an important part of our healthcare, the lack of access to vital medication should not become a common occurrence in any country, nevertheless, drug shortages have become a significant global issue. This can be best describe by a quote from Katherine Eban, in which she says that “imagine surgeons running out of anesthetic drugs, cancer patients who can't get lifesaving chemotherapy, and doctors scrambling for the most basic antibiotics.” This is even more troubling where in the U.S. and many other developed nations, where many of their healthcare providers and their patients have become even less accustomed to having access to routinely obtain necessary and life-saving medications.
There is an increasing pressure within pharmaceutical markets to reduce prices in line with medical budgets, as well as maintaining patent expirations. Being a global brand means disturbance in the operations when the market fluctuates. There is an internal weakness in the pharmaceutical industry, which includes theft and counterfeiting of drugs, and therefore is a weakness of Johnson & Johnson. While Johnson & Johnson has these specified weaknesses they deal with, there are even more opportunities which gives them an advantage for strengthening their position in the market. They already have the strength of meeting a broader range of customer needs with their products falling under three categories. Expiring patents on brand name drugs lead to an increase in the sales of generic drugs, Johnson & Johnson could capitalize upon this opportunity. With diagnostic markets growing, this positions the company in a good place as well as new medical therapies and findings that align with some of the company’s primary capabilities. Threats the company faces is with product recalls, extreme competition in pharmaceuticals that results usually in the first to enter is generally where success is determined. With technology developments, biotech concepts might possibly move the traditional pharmaceutical methods out of the
The current unprecedented skyrocketing costs of prescription drugs is a historic event in healthcare. The privatization of healthcare has arguably moved the health care system from patient-centric to money-centric. The recent unsettling examples of price hikes for drugs that combat AIDs as well as EpiPen brand epinephrine have left many consumers wondering why these prices are so arbitrary. The conversation between Government and big pharmaceuticals is not promising when looking for reprieve in the cost of life saving drugs. Free market capitalism dictates that the government should play a small role in the privatized health care system; however, the government is also a purchaser of pharmaceutical goods due to entitlement programs. It is not unimaginable for the government to place restrictions on these corporations that are exploiting the ill for more profit.
The first social problem surrounding the health care system in the United States is the growing problem with pharmaceutical companies. The industry averages a 17% profit margin and it has been booming for decades, but the industry is being heavily led by a core group of companies (Dr. Pratt). “In 1992 the top 10 companies accounted for roughly one-third of global pharmaceutical revenue, after a period of consolidation, by 2001 the top 10 accounted for nearly half.”( Leon-Guerrero, Zentgraf, 172). These companies hold a large majority of the market share and make most of their money off patented drugs. This growing core of companies that are dominating the market are causing more problems rather than solving them. These companies are all about making as much money as they can and it shows through the salaries of the executives of these companies (Dr. Pratt). The pharmaceutical industry should have their number one priority be to the users of their products rather than profit gains.
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 . 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.