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Essay On Prescription Drugs

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In recent years there has been a huge hike in prices for prescription and over the counter drugs in the U.S. Some of the drugs are drugs that save lives. The price increase of drugs is not a new things and it is because of many economic reasons, how much it costs to make and develop and how much the patent owner wants to sell them. The main problem though lies with the American government not wanting to put regulations the drugs. Some of the drugs are drugs that don't really affect you as much such as Ibuprofen but some of the drugs are drugs that save people's lives and they need them. Those life saving drugs in particular are the ones with the most price increases. Unfortunately this problem is only a problem in America and in other countries such as…show more content…
A Lot of the high prices for the drugs are because they were expensive to get on the market so companies set the price higher to make up for all of the money lost to develope it. After its developed there are a few economic factors that go into the price of Prescription drugs such as change in supply and demand, warehouse expenses, annual manufacturer price increase and manufacturer rebates. Another reason for the price is the patent of the drug. Once the drug is ready to be brought to market the patent is sold to a drug company who then start making and selling the drug. America has a lack of regulation when it comes to The price of drugs so the owner of the patent is allowed to sell the drug for however much he or she wants to which can often lead to abuse of the price. An excellent example of this happened in 2015 with a man named Martin Shkreli who was the CEO of a drug company and bought the patent of a drug called Daraprim. Daraprim is a drug that helps cure life threatening diseases in HIV and Aids patents. Once he bought it over night he jacked up the price from $13.50 per pill to $750 per pill, a 5000% price increase overnight. He has since been taken out of the company but it still shows
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