Pharmaceutical Companies And The Pharmaceutical Industry

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These pharmaceutical companies can increase their prices dramatically without the fear of losing profits because there is a lack of competition in their field. Since there is no other companies in the field to compete prices with, companies like Turing Pharmaceuticals can dramatically increase their price to increase their revenue. Even prior to Turing Pharmaceutical’s price increase, there was no competitors and large profits were being made. What is odd about this situation is that despite the large amount of profits being earned there are no new competitors entering the field. With other industries, when is an observed large amounts of profits being earned, there can be seen a large amount of new competitors entering the market. However, this is not the case for the pharmaceutical industry. According to Donna Sym, there are no new entrants in the pharmaceutical industry, only mergers within the industry (443). There are no new pharmaceutical companies entering the field. Instead the current pharmaceutical companies are buying the ownership of the different drugs from each other. When there is new ownership of a particular drug, most likely there would be a price increase that follows along. As observed with Daraprim, when Turing Pharmaceuticals gained ownership of Daraprim, there was an observed price increase of more than 5,000 percent. As of right now, in the market for Daraprim, there has been a company named Imprimis Pharmaceuticals that has created a $1 alternative
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