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Impacts of HIV and AIDS on society
Impact of globalisation on Hiv and aids
Impacts of HIV and AIDS on society
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· Describe the nature of supplying drugs to emerging markets at an affordable price without undermining their profits
· Research and analyse in depth the effectiveness of one proposed policy response to this issue.
Introduction
1 2001 saw a flurry of events, as highlighted in the excepts of the case study, which caused an awareness by the international community of the inequality between rich and poor nations in the care and treatment of people living with HIV/AIDS.
2 Epitomized by the lawsuit against the South African government, the drug companies "want desperately to be seen helping fight the global AIDS crisis
but the companies also remain unwavering in their defense of patents, even if it means suing poor nations that want to make or buy bootleg generics because they can't afford brand-name drugs." The episode not only represents a "moral scandal", but also a major economic, political and social challenge. Can the needs of the poor be met through increased access to the drugs, without necessarily hurting the profits of the drug companies?
Past Trends and New Developments
3 The following table summarizes the price changes for brand and generic drugs from 2000 to 2001 (IAEN).
Patents and Monopoly Power
4 Prices charged by pharmaceutical companies for patented drugs are commonly several orders of magnitude higher than their marginal cost (the cost of producing an additional unit of the drug). For innovative products like antiretrovirals, private firms legitimately need to recover their high overhead costs for research and development and for fulfilling the regulatory prerequisites of market approval in high-income countries. This attributes a "temporary monopoly power" to the patent owner and creates socially useful long-term incentives for continued R&D.
5 However, actual production costs are low. The low marginal costs explain why generic drug producers, as soon as they do not have to pay royalties to patent holders, are able to offer substitutes to branded products at comparatively low prices. This was the case in Brazil where its national industry produced cheaper generic drugs and was delivered free to HIV-infected patients. In a perfectly competitive market, in which consumers will automatically buy a substitute good if its price is lower, international drug prices would spontaneously tend to be based on such marginal cost. The demand for the brand drug will be reduced (and become more elastic) with the introduction of substitutes.
6 However, the international market of branded antiretroviral products is characterized by imperfect competition i.e. a limited number of firms supplies a limited number of products.
(7) Hall B. Patents and Patent Policy -. 2007. The 'Secondary' of the 'Secondary' of the 'Secondary' of the 'Secondary' of the 'Secondary' of the 'Secondary' of the 'Secondary' of the Morse H. SETTLEMENT OF INTELLECTUAL PROPERTY DISPUTES IN THE PHARMACEUTICAL AND MEDICAL DEVICE INDUSTRIES: ANTITRUST RULES. Allison JR, Lemley MA, Moore KA, Trunkey RD. Valuable patents. Geol.
In order to sustain the market share in this highly competitive industry, the pharmacies have to establish and maintain strong working relationships with PBMs that have power to divest particular clients from a pharmacy by denying reimbursement privileges to their customers. Buyer Power Strong It is not hard to obtain the same drugs from different sources, so the customer loyalty is virtually non-existent and the pharmacies have to try extremely hard to sustain their consumer base. Threats of substitutes Weak There are very few alternatives to drugs. Alternatives are practically limited to traditional medicine.
In order to take advantage of this demand, five billion dollars is spent by the pharmaceutical industry on marketing each year. This marketing, usually in the form of advertisements, often distorts facts and makes the necessity for drug treatment seem greater.... ... middle of paper ... ... Washington, D.C.:
Yu, Winnie and Joel Hay. 1999. “Drug Patents and Prices: Can we Achieve Better Outcomes?” Measuring the Prices of Medical Treatments. Pages 27-28.
It is said that name-brand prescription drugs in Canada cost approximately 40% less than they do in America. But it is illegal for the transport of drugs from Canada to America. Why? It is because Pharmaceuticals are simply greedy and prey on victims that are in need of their products to survive. It makes it hard for large households on a budget to purchase drugs to keep healthy. The way pharmaceutical companies look at their clients is like this: It is a life or death situation for them so the customers have to buy it in order to survive. According to the annual Fortune 500 survey, the pharmaceutical industry, expectedly, made it at the top of the list of the most profitable. The top seven pharmaceutical companies took in more profit-money than the top seven media companies, the top seven airline companies, the top seven oil companies, and the top seven car manufacture companies. (…cost so much, CNN) The profits of pharmaceutical companies are outrageous and extreme. There are many reasons to why these companies are greedily taking advantage of customers. The number one reason is because people who are need of these prescriptions have no other choice but to purchase them.
AIDS is slowly becoming the number one killer across the globe. Throughout numerous small countries, AIDS has destroyed lives, taken away mothers, and has left hopeless children as orphans. The problem remains that funding for the diseases’ medical research is limited to none. In the country Brazil, HIV/AIDS has been compared to the bubonic plague, one of the oldest yet, most deadly diseases to spread rapidly across Europe (Fiedler 524). Due to this issue, Brazil’s government has promised that everyone who has been diagnosed with either HIV or AIDS will receive free treatment; however, this treatment does not include help in purchasing HIV medications, that “carry astronomical price tags” (Fiedler 525). Generic drug companies have been able to produce effective HIV medications that are not as costly if compared to the prices given by the huge pharmaceutical companies. In contrast, the U.S. government has now intervened with these generic companies hindering them from making HIV medications, which may not be as efficient if made by the pharmaceutical companies. Not only are these drug companies losing thousands of dollars against generic drug companies, but also tremendous profit that is demanded for marketing these expensive drugs as well. “How many people must die without treatment until the companies are willing to lower their prices, or to surrender their patients so generic makers can enter market? (Fiedler 525).” With this question in mind, what ways can we eliminate the HIV/AIDS epidemic across the world? With research, education, testing, and funding we can prevent the spread of HIV to others and hopefully find a cure.
In the business of drug production over the years, there have been astronomical gains in the technology of pharmaceutical drugs. More and more drugs are being made for diseases and viruses each day, and there are many more drugs still undergoing research and testing. These "miracle" drugs are expensive, however, and many Americans cannot afford these prices.
Per capita spending on prescription drugs in America is far greater than any other country. Kesselheim goes on to say that this is a natural result of America’s free market approach to healthcare resulting in monopolies. These healthcare monopolies are not held accountable for their high drug prices. The claims that these costs can be justified through research and development is rubbish, according to
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 US. Industry groups, pharmaceuticals dedicated 16.6% of their amounts to basic research, while all other industries averaged at 5.3% (Sherer 1307). This fact validates the incentive pharmaceutical companies have to get a patent and acquire more power. Pfizer encourages R&D because of the incentives and a want to obtain patents to receive more profit. Pfizer has to promote itself to be successful, creating a good brand image that consumers will trust. If the company can advertise successfully, more consumers will purc...
"Reducing Demand for Drugs." UN General Assembly Special Session on the World Drug Problem. May 1998. Web. 02 Mar. 2011. .
It is the profits rather than the need of the world that drives the market, as Cahill points out. She laments that while in the 1960-1970 's theologic bioethicists influenced the field of bioethics, nowadays the ethical discourse involving Christian narrative gets" thinner and thinner," shifting away toward more secular and liberal views. As theologians are welcomed to partake in the ethical debates, their voices and opinions are rarely considered in policy making. Such situation causes the current trend amongst health care institutions,medical-surgical companies, and research labs, to focus on financial gain rather than ways to deliver health care to those who needed it the most. It is the consumers with the most "buying power" that have at their disposal the latest medical treatment, equipment, technologies, and medications while millions around the world lack the most basics of needs, such as clean water, food, shelter, education as well as the basic health care. Cahill fears that medical companies seeking profits will neglect or stop altogether to produce medications that are bringing low profits. Medications that are necessary to treat prevalent in the third- world countries or if you prefer the developing countries diseases, such as Dysentery, Cholera, Malaria, Rabies, Typhoid Fever, Yellow Fever, even warms, to name a
Stan Frinkelstein and Peter Temin believes that one solution is to eliminate the link between drug prices and drug discovery. This will help ease the fear of losing research funding for new medicine and by doing so, drug prices should be a lot more reasonable. The next solution they have is to undo the blockbuster mentality and this is closely linked to eliminating the link between drug prices and drug discovery. Blockbuster refers to pharmaceutical companies that achieve an annual worldwide sale of $1 billion or more. They can achieve this because the drugs are used by many patients and/or used for a long period of time. This will solve the drug price crisis because by doing so, researchers can focus more on society’s needs instead of focusing on how to generate more revenue. Their solutions will help researchers develop drugs that society truly
As the common person may know, drugs are very expensive. Prescription drugs, although still expensive, are one of the cheaper routes to go. However it can also be dangerous, because it’s easier for doctors to notice the abuse. It is said that Americans pay more for prescription drugs than any other country in the world (Brym and Lie). Other routes a drug addicted person can go is through the illegal drug trade, otherwise known as the black market. For example, cocaine can go for around $1500 per kilo in Colombia, which is around two pounds. Often times the price of cocaine in America can go for a retail price of around $66,000. These prices even for just cocaine are what keep the drug cartel’s ...
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, the generics industry and the WHO. As we said above, patents grant exclusive rights to an invention or a process of making and invention.
...ile the pandemic will absolutely leverage the rate of financial development, structural alterations are furthermore expected to be one of the prime economic hallmarks of the AIDS pandemic (Arndt 427-449). The effect of the HIV/AIDS epidemic can be visualized by the overwhelming change in mortality rate of South Africans. The yearly number of mortalities from HIV increased distinctly between the years 1997, when about 316,559 people died, and 2006 when an estimated 607,184 people died ("HIV AIDS IN SOUTH AFRICA"). Those who are currently assuming the burden of the increase in mortality rate are adolescents and young adults. Virtually one-in-three females of ages 25-29, and over 25% of males aged 30-34, are currently living with HIV in South Africa (UNAIDS). The good news, thanks to better supply of ARV treatment, is that life-expectancy has risen vastly since 2005.