Market Failure Of The Pharmaceutical Industry

The rise in drug prices is causing the public to ask why this is so and why there isn’t anything being done, or what the reason could be for sky high prices. Some of the reasons include pharmaceutical companies setting their drug prices

The current debate over the Mylan Company’s near monopoly of the epinephrine market through its EpiPen shows what can happen without monopoly regulation. While the cost to produce an Epipen is around $30, the price to the consumer is around $300 each. The economic implications for a family that needs to keep the device on hand to save a life can be excessively high, the emotional results of not having one when you need one are debilitating. This monopoly is further enhanced by state-enforced regulations requiring that schools keep EpiPens in stock and the, so-called, EpiPen law enacted in 2013, which leave little incentive for other pharmaceutical companies to develop their own technology for fast-acting emergency devices. (Bartolone, 2016) Breaking Mylan’s monopoly will not only lead to new product development but lower prices for consumers for a life-saving delivery

In 2015, the pharmaceutical industry spent over 27 billion dollars on advertising. The two greatest components of this effort were promotional advertising and free medication sampling, which the pharmaceuticals invested 15.5 and 5.7 billion dollars respectively (“Persuading the Prescribers”). Promotional advertising involves direct contact with health professionals, the most common being extravagant lunch conferences held for physicians and their staff. On the other hand, sampling involves distributing free sample of medications to physicians, who then have a choice of providing these samples to patients. As a result of these methods, the industry has seen revenue around $400 billion with 90% of physicians having a relationship with a drug company (Campbell 2007). Moreover, the prices of prescriptions continue to rise; a copay of a generic drug is $11.72, preferred brand drug is $36.37 and a specialty drug is $58.37 (Coleman and Geneson 2014). Although the profits are immense in the numbers demonstrated above, it is no surprise when pharmaceutical drug companies elevate their prices even more. For instance, recently Turing Pharmaceuticals raised the price of their medication Daraprim from $13.50 to $750. Keep in mind, this medication is used for threatening parasitic infections, aids, and cancer with alternative options currently found to be inefficient (Pollack 2015). Another example of this practice involves cycloserine, a drug used to

Shortages of prescription drugs in the United States are a serious threat to our nation’s health and safety. At first blush, this problem appears fairly simple and straight forward to solve. In reality, there is a complex web of causation with a number of root causes contributing to drug shortages. The aim of this paper is to answer the question: How do we mitigate prescription drug shortages? This discussion is written from the standpoint of advising the current presidential administration how to address this crisis. This essay begins with a discussion regarding the background of the issue. Next, the landscape, including stakeholders in this matter is identified. Following, political, social, economic, and practical factors surrounding

We in America tend to take medications for almost any problem we have, from headaches to gastrointestinal pain, to more serious chronic disorders such as depression and attention deficit disorder. While many of the uses of such medications may be necessary and legitimate, many are not, and due to this fact, many people become dependent on medications, mentally, and or physically. This problem is not simply the fault of the individual; in fact, the blame can also be placed upon the medical community, and the pharmaceutical companies who produce the drugs. How often can one turn on the television to see advertisements for Claritin, Aspirin, Pepto-Bismol, or even Zoloft or Ritalin? The pharmaceutical industry is motivated by monetary

Prescription drug prices are on the rise in the United States. Currently, the United States does not implement a price control on prescription drugs. Every day the supply and demand for prescription drugs fluctuates. Pharmaceutical companies produce drugs that are necessary for survival. Therefore, it is necessary for research and development to continue in the United States. Those suffering the effects of exorbitant prices must do so until a generic form of a prescription drug is produced. Once approved by the FDA, new drugs will make their appearance on the market and patients will no longer suffer financially. Until then, it is necessary for pharmaceutical companies to price their drugs based on the idea of supply and demand. This produces the profit used to fund research. Price controls discourage innovation. If a price control were set in place, of course the price of prescription drugs would decrease. However, the development of new drugs decreases with it. Today’s generation would benefit from lower prices, while future generations would suffer from the loss of drug innovation.

Pharmacy retailers once sued Pfizer for allegedly conspiring with generic drug manufacturers to delay the launch of their cheaper generic drugs. However, the FDA’s “user fees” systematically generated similar results. Consumers were punished routinely with higher priced prescription drugs because generic drug companies couldn’t pay “user fees” until 2012. Consequently, the approval process generally took

A lot of people, particularly the patients who need them, are beginning to wonder why American drug prices are so high. It makes sense why the pharmaceutical companies are selling at the prices they do: they are a business; and they want to, above all else, make a profit. But the real question is: what are all of the

One group that believes it has the answer is conservatives. People subscribing to this ideology believe in the ability of the free market to balance out costs of prescription medication such as Sovaldi’s $1,000 per pill price tag (Pharmacy Times) and self-correct to eventually provide the best product so long as government does not prevent the market from naturally progressing. The first feature of their solution requires the trimming of government agencies’ budgets and scope such as the funds appropriated to and power vested in the United States Food and Drug Administration. A 2014 study reviews the FDA’s effectiveness in its job by comparing different divisions within the agency against each other. The study concludes that, even after adjusting for varying levels of investigation required for the safety and usefulness of different categories of drugs, there are significant differences in how quickly drugs reach the market. Some divisions are much more efficient than others.

Specifically the health care sector and the pharmaceutical environment are directly linked by their interactions in their quest to addressing the health requirements of the nation. Furthermore, the transformation of the Pharmaceutical Industry due to Congressional Reform will continue to impact both the economic sector and health care policy. Subsequently, one of the principle elements associated with the rising cost of health care expenditure can be directly connected to the influence and dominance of the Pharmaceutical Industry. Therefore, to what extent does the influence and dominance of PhRMA, or the Pharmaceutical Research and Manufacturers of America, and the Pharmaceutical Industry impact the rising cost of health care?

The pharmaceutical industry is the nation’s leading business with such influence, any objectives proposed affects us all as prospective consumers. The pharmaceutical sector is a 790-billion-dollar industry in the U.S alone, this includes manufacturing, distribution, research, and advertisement use (Mihaescu). According to a 2011 research study conducted by Gallup, over 52% of Americans claim they are currently taking prescription medication. In 1938, the Food and Drug Administration (FDA) passed the Federal Food, Drug, and Cosmetic Act allowing pharmaceutical corporations to market their products to American consumers (Lee). Over three decades later in 1969, the agency issued final regulations on do’s and don’ts. One of the most concerning regulations to this day is

Pharmaceutical companies and manufacturers are some of the most reported on entities in the world. With many recalls and promotional commercials, scandals, conspiracy theories and research studies, there is never a dull moment. Since the pharmaceutical industry is directly connected to the health of most humans and even other organisms on Earth, the industry gets a lot of widely spread press in various forms when something negative happens. In order to deflect the negative press and keep it from affecting their stocks, most pharmaceutical companies are quick and successful at maintaining a positive reputation and diverting attention with positive narratives that compete with and overshadow the negative press.

The prices of drugs by Pharmaceutical companies are dependent on various costs such as Production, Cost of R&D, Marketing & Distribution and Demand for the Drug4.

The article examines how staggeringly inefficient the United States social protection system is, and this is seen from the viewpoint of doctor suggested drugs. The worldwide scattering of pharmaceuticals is seen through this article where it tried to gauge the effect of segments, for instance, ensured advancement rights and esteem control courses of action on firms' decisions to dispatch new meds extensively. To the best of our understanding, this short paper is the first to look at the worldwide scattering of pharmaceuticals freely by a measure of solutions' restorative quality. While our solution quality measure is expressly flawed, while it is self-governing of significant worth, the errand of these guidelines happens in the shadow of

Environmental influences, such as diseases and illnesses form the need for pharmaceutical companies like Pfizer. Having such needs may help in strengthening the company. The constant demand for products that the company produces may increase their production rate, also their potential income. As mentioned in the theory of Supply and Demand, there is a relationship between the increase or decrease for a product and the increase and decrease for the supply of the certain good. It also includes the part played by the price.