Free Essay

Generic Prescription Drug Cost

In: Other Topics

Submitted By dmo2793
Words 3188
Pages 13
Generic Prescription Drug Costs Prescription drugs have been causing problems in the United States for a very long time. Pharmaceutical companies are one of the largest profiting global industries. It was in 2009 when drug shortages increased with numbers reaching what many have termed crisis level which raised all prices of generic prescription drugs significantly (Fox, Sweet, & Jensen, 2014). This increase was and still is leaving patients with a life threatening decision; either go on paying for their prescriptions which they cannot afford or stop their treatment all together and risk their illness progressing and leading to possible death. Some have chosen to end their treatment altogether, while other patients have confessed to taking dangerous measures to ensure their refills last longer like cutting their pills in half or skipping doses. The United States drug manufacturers are raising prices endlessly without regulation. Instead of generic brand medication being affordable, they are creating their own monopolies and setting their prices just as competitively as name brands. Instead of buying and stocking manufacturers with raw materials from within the United States, they source raw materials from overseas creating delays and a huge shortage in raw materials has surfaced. Instead of keeping the FDA in the loop as to what is going on in the production process, manufacturers wait until the very last minute to report a problem which goes against all rules, regulations, and even the law. Generic prescription drug costs have risen dramatically in the past decade due to industry monopolies, raw material shortages, and poor communication between manufacturers and the Food and Drug Administration. The first of many reasons for the increase in price of generic prescription drugs is due to a surge in industry monopolies. When name brand manufacturers wish to create a new patent and invest in the research and production of a new drug, it can cost anywhere from 230 to 500 million dollars (Openshaw, 2005). They then must set the price on the new drug high to compensate for all of the money spent in the process of development. Once they have earned the money for development back and the drug patent expires, any generic brand manufacturer can take over production of that drug. As the name brand manufacturers move on to pursue more profitable drugs, they leave generic manufacturers with total control in the price of that prescription in the market. Mergers of small generic drug manufacturers who once sold the same drug can now control the price of that drug after eliminating competition, raising the prices at their own will (Schweitzer, 2013). This allows and even encourages them to set the prices just like brand-name manufacturers would because there is no longer any company selling at a higher price above them. Furthermore, these mergers go against all protocols for monopolizing in the pharmaceutical world. Why is this almost a betrayal to the people who need these medications? Let’s backtrack to the very beginning of generic prescription drugs. They came about for reasons such as, providing high-quality health care at lower prices, saving the American health system a ton of money, and preventing brand monopolies. Generic prescription drugs were a way for America to create a free-market solution for all of the problems with pharmaceutical access which worked for three decades up until now in which the United States is experiencing market failure (Greene, 2014, para 8). The second of the many reasons for the increase in price of generic prescription drugs is due to a shortage in raw materials. To start off with a powerful statistic: nearly 80% of all raw materials in the United States come from abroad (Wilson, 2012, para. 22). Though manufacturers have suggested that the Food and Drug Administration should hire more people to work in the drug shortages department, it is still virtually impossible for them to inspect manufacturers in different countries. The fact that so many active pharmaceutical ingredients come from overseas, when they have raw material shortages or manufacturing difficulties, it is inevitable that the United States will be affected on a very large scale. Outsourcing raw materials that are more difficult to get approved by the FDA causes stoppages in production and shortages in the drug itself. (Schweitzer, 2013). Why don’t name brand manufacturers experience the same shortages as generic brands? Name brands have plenty of backup manufacturing lines to produce a multitude of the same drug in the same time. Generic brands are often made on one production line that is also used to make multiple other drugs for that manufacturer. As raw materials make it into the United States among FDA approval, they are dispersed first to name brand manufacturers because they are considered a priority compared to generic brands. Since raw material shortages happen so often, manufacturers increase the price of generic prescription drugs because they have to make up for their lack in selling higher quantities. The third and final reason for the increase of generic prescription drug prices is because of poor communication between manufacturers and the Food and Drug Administration (FDA). Manufacturing companies are required to warn authorities six months in advance when they foresee a drug shortage, however they fail to do this and they don’t face any consequences that are suggested. Besides communication issues, the FDA does not set and enforce the same laws on generic brand manufacturers as they do on name brands, even with all of the price increases that have been occurring lately. The Federal Law system requires brand name manufacturers to pay a rebate to Medicaid when they increase the price of drugs faster than the inflation rate however, generic brands do not have the same requirements (Cummings, 2015, para. 19). The increase in prices of generic prescription drugs even sparked the interest of the Subcommittee on Primary Health and Aging. They held a meeting to discuss why the prices of prescription drugs soared to unaffordable prices and not a single representative from generic manufacturers showed up to give testimony. The FDA has apparently sent nearly 7000 warning letters in 2013 to the top generic brand manufacturers to either lower the price and stop breaking the law or face the consequences. Since then there has been another 40% increase in price which can be blamed on heightened FDA scrutiny (“Hearing Highlights,” 2014, para. 7). Another huge reason why the Food and Drug Administration is to blame for the heightening prices of generic prescription drugs is because they are refusing to change their standards. In fact, health groups encouraged them to cut down even more on factory inspections after recent deaths due to supposed contamination (Wilson, 2012). Qualifications for ‘lifesaving’ medications are also so high that so few drugs fit the criteria allowing manufacturers to keep to themselves when there are shortages of less important drugs. The FDA is often kept in the dark when it comes to production shortages and by the time they are informed, it is almost too late for them to step in and help in a timely manner and that is why poor communication causes price increases in the pharmaceutical world. Generic prescription drug costs have risen so high that they are now affecting the lives of patients who need these drugs for their health and well-being. Generic manufacturers were originally brought about as a way for America to create a free-market solution for all of the problems with pharmaceutical access. This market failure is not only affecting patients but it has also been the cause of hundreds of small business pharmacies across the nation to shut down. They are actually losing money with every prescription filled because they are paying more than insurance companies are reimbursing. From 2010 to 2014, there has been a 373% increase in the cost of generic prescription drugs. In 2010, patients were paying an average of $13.14 per prescription and in 2014, more than a third of all generic drugs cost more than $100 per (Hirst, 2014, para. 19). Generic prescription drug costs have risen dramatically in the past decade due to industry monopolies, raw material shortages, and poor communication between manufacturers and the Food and Drug Administration.

References
Cummings, E. (2015, December 20). Restraining the cost of prescription drugs. Afro - American Red Star, A.7. Retrieved from http://ezproxy.philau.edu:2048/login?url=http://search.proquest.com/docview/1646331897?accountid=28402
Manufacturing companies respond to reductions in supply of drugs by raising their prices simply because they can. The article also states the few other reasons for drug price increases: drug ingredient shortages, industry ‘consolidation’, and production slowdowns due to manufacturing problems. Federal law requires brand name manufacturers to pay a rebate to Medicaid when they increase the price of drugs faster than the inflation rate however, generic brands do not have the same requirements. This allows them to raise the price as high as they want without regulation or consequences. This article was written in 2014 by Elijah Cummings who is a ranking member of the Committee on Oversight and Government Reform. The information from this article can be used in a few different places in the research paper however, though the information is true it is also biased since Cummings states that he personally suffers from the increasing prices of prescription drugs. He talks more about how the general public is affected by the issue and less about why the issue is occurring.
Fox, E. R., PharmD., Sweet, B. V., PharmD., & Jensen, V., R.Ph. (2014). Drug shortages: A complex health care crisis. Mayo Clinic Proceedings, 89(3), 361-73. Retrieved from http://ezproxy.philau.edu:2048/login?url=http://search.proquest.com/docview/1507834302?accountid=28402
According to this article drug shortages are 43% because of manufacturing problems, 15% because of delays in manufacturing or shipping, and 10% because of shortages in raw materials. Generic brands are more likely to experience shortages than name brands because they don’t have any backup manufacturing lines. Generic brand drugs are often made of one production line that is used to make many other drugs and that is also a cause for shortages. Raw materials are sent to name brand manufacturers first because they are a priority and generic brands come second. This article is perfect for the raw material shortages section of the research paper. The author Erin Fox is Manager of the Drug Information Service at University of Utah Health Care and Associate Professor at the Department of Pharmacotherapy, University of Utah College of Pharmacy and her knowledge will be a great addition to the paper.
Greene, J. (2014, November 20). Generic drugs kept health care cheaper for 30 years. Why are their prices surging? Retrieved January 23, 2015, from http://www.slate.com/articles/business/moneybox/2014/11/generic_drug_prices_why_the ir_prices.
This site has a lot of information on the very beginnings of generic prescription drugs. They came about for reasons such as, providing high-quality health care at lower prices, saving the American health system a ton of money, and preventing brand monopolies. Often times, there will be many different companies competing to sell the same drugs. As the larger brand-name manufacturers drop these prescription drugs to pursue more profitable ones, they are allowing the generic suppliers to now control the market over that specific drug. This allows and even encourages them to raise the prices just like brand-name manufacturers would. Generic prescription drugs were a way for America to create a free-market solution for all of the problems with pharmaceutical access which worked for three decades up until now in which we are experiencing market failure. This is an article written by Jeremy Greene who is an Associate Professor of medicine and the history of medicine at the John Hopkins University with an MD and a PhD as well as an author of a book written specifically about generic prescription drugs.
Hearing highlights the problem of skyrocketing generic drug prices - RxRights. (2014, November 25). Retrieved January 24, 2015, from http://www.rxrights.org/congressional- hearing-skyrocketing-generic-drug-prices/
This article gives insight about what was happening behind the scenes with representatives of the Subcommittee on Primary Health and Aging after the prices of prescription drugs soared to unaffordable prices. The United States doesn’t have a national health care program that is allowed to negotiate prescription drug prices with pharmacies. This allows pharmaceutical companies to set their prices at whatever they want without any sort of regulation. They set up a hearing to discuss the issues of the recent increase in prescription drugs and not a single one of the generic drug manufacturers showed up to give testimony. The FDA has apparently sent nearly 7000 warning letters in 2013 to the top generic brand manufacturers to either lower the price and stop breaking the law or face the consequences. Since then there has been another 40% increase in price which can be blamed on heightened FDA scrutiny. RxRights is a very reputable source with a lot of information that is backed by many other accredited people.
Hirst, E. J. (2014, Nov 28). Generic drug prices skyrocket in last year: Shortages of raw materials and industry consolidation are among factors cited. Los Angeles Times, B.4. Retrieved from http://ezproxy.philau.edu:2048/login?url=http://search.proquest.com/docview/1628429330?accountid=28402
The article goes more in depth on why prescription drugs are experiencing an increase in cost that has nothing to do with controlling the market. Medical advancements used to replicate brand-name drugs have become more expensive along with raw material shortages used to produce them. From 2010 to 2014, there has been a 373% increase in the cost of generic prescription drugs. In 2010, patients were paying an average of $13.14 per prescription and in 2014, more than a third of all generic drugs cost more than $100 per. Even pharmacies are affected by the recent soar in prices, one in every 11 generic prescription drug has doubled in cost for them in the past year as well. Ellen Jean Hirst is a very accredited reporter and she cites many Chief Medical Officers and doctors who are also accredited.
Milmo, S. (2014). Tackling drug shortages. Pharmaceutical Technology Europe, 26(11), 14,16. Retrieved from http://ezproxy.philau.edu:2048/login?url=http://search.proquest.com/docview/1634480251?accountid=28402
This article gives a new outlook into why there are shortages and states that it is almost solely due to manufacturing difficulties. The article also further explains that there is a sure system that is preventing supply disruption and procedures for reporting potential shortages to the authorities. Manufacturing companies are required to warn authorities six months in advance when they foresee a drug shortage which they fail to do. The Drug Shortages Prevention Plan of the International Society for Pharmaceutical Engineering are simply recommending to focus more on the need for manufacturers to improve their quality systems, use metrics to identify and alleviate risks, and foster a corporate quality culture for improved communication with authorities on potential shortages. They are blaming the shortages solely on the failure for manufacturing companies and authorities to communicate. This is a perfect article to use for the section of the research paper regarding poor communication. Sean Milmo is a renowned freelance writer and is a trusted source.
Openshaw, M. S. (2005). The economics of prescription drug prices, government intervention, and the importation of drugs from Canada. Nursing Economics, 23(6), 307-11, 279. Retrieved from http://ezproxy.philau.edu:2048/login?url=http://search.proquest.com/docview/236938034?accountid=28402
It costs anywhere from $230 to $500 million dollars to develop a new drug. These manufacturers receive patents for the new drugs they create which allows them to control the selling price since there isn’t any competition. Manufacturers who don’t receive patents for new drugs still have to set their price high to supplement for all of the money spent developing the drug. However, since they don’t have a patent, generic brand manufacturers can replicate the same prescription drug and market it for a much lower price because they skipped out on all of the developing costs. Once the drug patent expires, manufacturers then move on to pursue more profitable drugs leaving generic manufacturers total control in the price of that prescription. This article was written in 2005 however, this information still holds true today. This is the typical life cycle of a prescription drug and how the prices can vary. This objective information is perfect for the ‘industry monopolies’ section of the research paper.
Schweitzer, S. O., PhD. (2013). How the US food and drug administration can solve the prescription drug shortage problem. American Journal of Public Health, 103(5), E10-E14. Retrieved from http://ezproxy.philau.edu:2048/login?url=http://search.proquest.com/docview/1349241529?accountid=28402 This article states that the drug shortage problem comes from the ‘perfect storm’ of 3 contributing factors. This includes a consolidation of generic drugs since there has been a reduced number of both buyers and manufacturers, an increased market of generic drugs, and an increase in dependence on outsourced raw materials. There has been mergers of small generic drug manufacturers who sold the same drug who can now control the price of that drug after eliminating competition, raising the prices at their own will. Outsourcing raw materials that are more difficult to get approved by the FDA causes stoppages in production and shortages in the drug itself. This article is perfect for the portion of the research paper regarding raw material shortages and poor communication between manufacturers and the FDA. Stuart Schweitzer is a Professor of Health Policy and Management with a Ph.D. and is a very reliable source for information pertaining to drug shortages and the FDA’s involvement.

Wilson, D. (2012). Deepening drug shortages. Health Affairs, 31(2), 263-6. Retrieved from http://ezproxy.philau.edu:2048/login?url=http://search.proquest.com/docview/921992670?accountid=28402
This article goes further into detail as to why the FDA is partly to blame. There are drug shortages due to inspection issues. The Food and Drug administration cause strain by refusing to change their standards. In fact, health groups encouraged them to cut down even more on factory inspections after recent deaths due to supposed contamination. While they are to blame, the article also backs the FDA from their perspective. They are often kept in the dark when it comes to production shortages and by the time they are informed, it is almost too late for them to step in and help in a timely manner. Manufacturers have stated that the FDA should hire more people to work in the drug shortages department however, it is nearly impossible for them to inspect manufacturers abroad where almost 80% of all raw materials come from. This article works for the poor communication section of the research paper. The author, Duff Wilson, is an investigative reporter and editor who has won many awards for his work in the industry and will be a great contributor for credible information for the research paper.

Similar Documents

Free Essay

Generic Prescription Drug Cost Hike

...been that of whether or not there should be a prescription-drug benefit added to Medicare. Both George W. Bush and Al Gore have proposed a plan to expand Medicare to include full prescription-drug coverage for senior citizens receiving Medicare, at the expense of taxpayers. It is obvious why this issue has been such a priority for both candidates. Senior citizens vote at a much higher rate than other age groups. Both candidates know the importance of these senior citizen votes and believe that the proposal of adding a prescription-drug benefit is something that will appeal to a vast number of senior citizens. Both candidates have portrayed the issue as being very critical and as a serious problem that needs to be addressed. The question, however, is whether or not such drug coverage is a worthwhile project to undertake. Is the problem indeed serious enough to call for the type of reform that the candidates are proposing? Medicare is already a very costly program to keep up, and adding prescription-drug coverage would increase these costs even more. In order to fund this project, there will need to be a tax hike. Should taxpayers subsidize this prescription-drug benefit? Is there a good reason why this redistribution should take place? What are the benefits and costs of this proposal? These and other questions will be addressed in this paper as we examine the following topics: the need for senior citizens to have prescription-drug coverage, the political rhetoric involved......

Words: 2194 - Pages: 9

Premium Essay

Affordable Care Act and Part D

...coverage such as vision, hearing, dental and/or wellness programs, and part D is prescription drug coverage. The Patient Protection and Affordable Care Act survived a vote of the Supreme Court justices and changes will be implemented within the next few years. As people age and the number of people entering the golden years is growing, these people will be needing and using more health care than past generations. This paper will focus on the changes that will occur to close the gap in Medicare’s prescription drug “donut hole.” The “Donut Hole” of the prescription drug plan is the amount where the senior had to pay the price for the prescription until it reached the high end and Medicare took over again. The gap for prescriptions was reached at $2830 and after the cost of $6440 did Medicare coverage kick back in. “Once the total drug costs (what the plan paid and what the enrollee paid) reached $2830, enrouees went into the donut hole, where they paid the total cost of their drugs. This no-coverage feature continued until total drug costs reached $6440” (Kaplan, 2011, p. 25). The result was that enrolling in the drug plan was voluntary. Prior to any reform beginning, Medicare enrollees wanted some changes made to promote more preventive and wellness health programs. A proposal was made to President Bush’s administration for education, referrals, and screenings (Kaplan, 2011). Prescription drugs are the third leading expense in a...

Words: 1609 - Pages: 7

Premium Essay

Supply and Demand

...generating billions of dollars in revenues on prescription drugs that have patent protection. Once a drug loses its patent protection, other manufacturers are allowed to make a generic form of the drug. Having a generic form of a brand name drug available should increase the supply in the market for consumers by driving cost down. This paper will discuss the effect of generic drugs and evaluate their effect on the supply and demand for drugs that no longer have patent protection. An example of a prescription drug that recently lost its patent is Lipitor. It is a cholesterol-lowering drug. It has been a top selling drug for several years, totaling over seven billion dollars in sales in the US and a combined total of over ten billion dollars worldwide in 2010. Lipitor’s patent expired on November 30, 2011 making the drug available to be manufactured as a generic drug, therefore increasing affordability to consumers. Until May 2012, Ranbaxy had the sole rights for creating Lipitor’s generic form after the patent expired; after that, it was made available to other drug companies. Pfizer continued to market Lipitor after its patent expired and had spent over eighty seven million dollars in marketing, to generate three hundred eighty three million dollars in the first quarter of 2012. Market power shifted from Pfizer to other drug manufacturers with the expiration of the patent (Hughes, 2012). When a brand name prescription drug such as Lipitor is developed with a......

Words: 1447 - Pages: 6

Premium Essay

Eli Lily & Co

...disease at that time. This effort resulted in the world’s first commercially available insulin product in 1923. In the 1940’s Lilly was among the first companies to develop a method for mass production of penicillin. In the 1950’s Lilly began to expand in to the world market and began to experiment with different business portfolio strategies. Lilly also launched two powerful antibiotics during this year for patients that did not benefit from or were allergic to penicillin. In 1960 Lilly launched the first in a line oral and injectable antibiotics in the cephalosporin family and two anti cancer drugs. In 1970 Lilly launched the world’s top selling antibiotic, Ceclor. They also began to diversify their portfolio with the purchase of Elizabeth Arden in 1971 and IVAC in 1977. In 1982 Lilly pioneered and introduced the first genetically engineered drug. Lilly also launched a new drug for the treatment of clinical depression in the 1980’s. Prozac became their top seller and accounted for almost 30 percent of the company sales. In the 1990’s Lilly also introduced a stream of innovative products, but began to be affected by the changes in health care management. In an attempt to combat these changes and the development of Pharmaceutical Benefits Management companies (PBM’s) Lilly purchased PCS Health Systems in 1994. When this investment did not work as planned Lilly sold PCS Health Systems resulting in a write off in 1997. In the late 1990’s Lilly focused their......

Words: 3703 - Pages: 15

Premium Essay

Health Care Deli

...‘ Health Care Delivery Systems Issue Report: Cost of Prescription Medications Jill Stanley Seattle Pacific University Health Care Delivery Models NUR 4944 July 19, 2014 Most everyone knows that the United States has the leading role when it comes to health care spending and pays out almost one thousand dollars per person per year on pharmaceuticals (Paris, 2014). Sadly, while the financial burden is high for the average family, many Americans are not taking their recommended medications because of the high costs. One in five Americans skip doses because of the cost (Paris, 2014). While there are many things nurses can do to enhance prescription medication compliance, understanding costs and helping implement ways in which patients can control costs, while promoting better outcomes, is critical. The United States spends almost 800 dollars a unit per population on prescription drugs, more than any other country and almost twice the average of 401 dollars per capita (OECD), (Ginsburg et al., 2009, p. 28). Prescriptions account for 17% of all privately insured health care costs and 25.4% of out of pocket spending according to Health Care Cost and Utilization Report (HCCI): 2011. Brand name or patented drugs have increased in price by 17.7% from 2010 to 2011 and generic drugs have actually decreased in cost by -7.2% for the same years from the same HCCI report. Generic drugs have had an increase in utilization from consumers’ while brand name has decreased and......

Words: 2836 - Pages: 12

Premium Essay

Case 2 Salix Pharm

...continue to be successful with this narrow strategy or do they need to alter their mission? Do they need to revamp their “search and develop” strategy? Key issues Salix encounters are increased use of generics, limited scope of disease treatment, and dependency upon other research companies to initially start and develop chemicals. If Salix wants to expand their strategy scope, they could focus on medications in other areas of the body, they could expand outside of the US market, they could further develop their international partner network, or they could focus on their own research instead acquiring licenses and rights to other chemicals. Introduction Salix is a small pharmaceuticals company started in 1989. Since this time, Salix has acquired the rights to develop and market four major prescription compounds. They have become a successful player in the US gastrointestinal market, while profiting from licensing their products in other countries. Although Salix has been successful, the co owners must make a decision on whether or not their current strategy is sustainable. Can they still “search and develop” acquired compounds and stay successful? Salix needs to determine if their existing prescription drugs’ profitability can last while they find another research companies drugs. Should they expand outside of the GI area of expertise and find other markets? If Salix used their pharmaceutical expertise, they could expand into other disease areas, growing in......

Words: 1202 - Pages: 5

Premium Essay

Pharma and Healthcare Reform

...opportunities for many industries but specifically, the pharmaceutical industry will see much growth. However, one must look at the effect on brand-name and generic drug manufacturers individually to fully understand the ramifications. Overall, healthcare reform is a large growth opportunity for the pharmaceutical industry and research shows a great deal of support for the legislation. In 2009, pharmaceutical interests spent $188 million lobbying for this healthcare reform and are projected to see a $30 billion net gain over the next 10 years. With the help of the Affordable Care Act, pharmaceutical companies have an opportunity to expand their customer base by over 30 million people but the ones paying for the prescriptions will begin to change from healthcare providers and patients to insurers and managed programs (insurance companies and government programs). Due to this change, the payers will become more cost-conscious in order to sustain continued affordability, thereby relying more on generic drugs than before. The pharmaceutical industry is made up of brand-name manufacturers (Phizer) and generic drug manufacturers (Teva) each with their own strategy and tactics. Generic drug companies develop their products to be cost-conscious alternatives to brand-name drugs. Once a drug has been introduced into the market, generic drug companies develop their product to be offered when the brand-name drug’s patent expires (typically 20...

Words: 977 - Pages: 4

Premium Essay

Brand Name Pharmaceutical Management- Industry Profile

...Due to its increasing demand and globalization, the Brand Name Pharmaceutical Manufacturing in the United States will continue to be profitable despite competition from generic pharmaceuticals, barriers to innovation, and safety regulation. An industry overview Brand Name Pharmaceutical Manufacturing in the United States is one of the largest industries in the world today. This industry produces prescription and over-the-counter drugs as well as biologic products that are primarily intended for the treatment of human illnesses (Zhong). Its major products and services include other pharmaceutical preparations, biological products, oncological products, medicinal and botanical products, respiratory agents, lipid regulators, anti-diabetics, and in-vitro diagnostic substances (Turk). Similar industries include generic pharmaceutical, cosmetic and beauty products, scientific research and development, and biotechnology manufacturing in the United States (Zhong). The Center of Drug Evaluation and Research (CDER) of the Food and Drug Administration (FDA) (Zhong) is the government agency in charge of regulation and oversight of this industry. It consists of 1,575 businesses. Major players and their market shares consist of Pfizer Inc. (10.9%), Merck and Co. Inc. (10.4%), Johnson & Johnson (8.0%), Amegen (7.4%), Eli Lilly & Company (7.2%), and Abbvie Inc (6.4%) (Turk). In 2013 it brought in $165.0 billion dollars in revenue and $35.6 billion in profits. Between the years of 2012......

Words: 1160 - Pages: 5

Premium Essay

Doctor

...pharmacists in their private pharmacies in different areas of Baghdad governorate was done through the use of a specific set of questions in a questionnaire format. Results: Most participated pharmacists agreed that physicians at most times change their prescribing pattern by attendance of the MRs, additionally there is a significant decline in the number of prescriptions for the promoted drug by the absence of medical representative for long period of time, furthermore participated pharmacists agreed that there is an irrational prescribing patterns by most physicians in Iraq. Conclusion: The interaction between MRs and physicians in Iraq, usually result in non rational prescribing patterns, which may in turn ne gatively affecting the health of the patients and on the other hand increases the cost of medications. Keywords: Promotion, medical representative, prescribing pattern. INTRODUCTION Drug promotion refers to all informational and persuasive activities by manufacturers and distributors, the effect of which is to induce the prescription, supply, purchase and/or use of medicinal drugs [1]. There are many tactics for drug promotion that were adopted by pharmaceutical companies including: physicians-targeted promotions, direct to consumer advertising, unethical...

Words: 1909 - Pages: 8

Premium Essay

Merk's Analysis

...word’s unmet medical needs. Merck sells its products primarily to: drug wholesalers and retailers, hospitals, clinics, government agencies, and managed healthcare providers such as health maintenance organizations (HMOs). In the past, Merck used to pursue all areas of unmet medical needs. Today however, under its new strategy, Merck concentrates its research efforts on nine priority areas; addressing the world’s most pressing health care challenges. In 1984, the U.S. Congress passed the Waxman-Hatch Act; simplifying the FDA approval process for generic drugs. Manufacturers of generic drugs were now required to show only that their drugs were chemically and biologically equivalent to the original patented version of the drug. And so, an FDA approved generic drug was considered equivalent, in its effect, to a “branded” drug. Waxman-Hatch enabled manufacturers of generic drugs to enter the market more easily, while also greatly reducing their research costs and eliminating the need for lengthy clinical trials. With the passing of the Waxman-Hatch act, competition came from all over the world; jeopardizing Merck’s core revenue stream and driving the need to commercialize new blockbuster drugs. As soon as a patented drug came off of patent, generics would enter the market; greatly reducing the original patented drug’s market share overnight. Generic drugs claimed a greater share of the U.S. prescription drug market, rising from 10% in 1984 to over 36% in 1993.......

Words: 793 - Pages: 4

Premium Essay

The Realism of Rationing

...in the worldtopping the charts in terms of financial assets, the United States is often criticized for itscontinues to spend an excessive amount of money on healthcare. In fact, the GDP percentage spent on health care is outrageous percentage of GDP spent on health care. As this number rapidly nearing rises and nears a record high twenty percent. For this reason,, there is are reasonsis evidence to supportbelieve that there are several flaws in the our current system. The problem has escalated at such a rate that there is no longer a question of “if” we address the rising health care costs, but “how” we handle them. Many other Several other countries sustain a more productiverewarding health care system in terms of preventive and curative health services, family planning, nutrition activities and emergency aid while maintaining a lower health care cost per capita (Davidson)at a fraction of the cost of America’s. In order to bring this spending in line with other countries, the United States must be willing to make sacrifices in fields such as insurance, pharmaceuticals, and research among healthcare institutions. heathcare research. This has proven to be a very difficult issue to address due to a longn extensive list of ethical issues within the systemdifferences among American citizens. It has been generally accepted that American’s spending could be brought in line withdown to the level of these other countries if the distribution of medical goods was rationed at rate......

Words: 3685 - Pages: 15

Premium Essay

Our Elders Pay the Price

...Our Elders Pay the Price Shelly Brewster HLTH 481-905 April 2, 2014 Our Elders Pay the Price The current healthcare system is problematic in America, and the elderly population is suffering the most financially. Prescription costs are sky-rocketing and since insurance and social security do not cover all the costs, the elderly are paying out of pocket for their medications. Employees in the medical field should prescribe drugs that treat multiple symptoms, suggest substituting brand names for generic names, and navigate patients to cost effective programs. Healthcare administrators need to create a policy for medical staff that will require them to monitor and provide more financially suitable healthcare options for elderly consumers in addition to recommending lifestyle changes which will result in a decrease of medication costs. Healthcare providers need to educate consumers on the fact that prescription drugs can often times be substituted for lifestyle changes. Doctors almost always suggest a pharmaceutical solution, often times without even considering alternatives. If healthcare administrators implement the need for doctors to go beyond the “quick fix” of drugs and encourage them to prescribe lifestyle changes instead, medication costs would be nonexistent. For example, high cholesterol is an issue in our country and if left untreated it can develop into secondary problems such as diabetes, high blood pressure (or hypertension) and several other complications.......

Words: 1298 - Pages: 6

Free Essay

Pharma Supply Chain Def

...Pharmaceutical Manufacture: Pharmaceuticals manufactures develop prescription and over the counter products that are used to prevent or treat illnesses in humans and animals. BRAND name drugs or manufactures are those medications that have patent protection. So once the product has been approved, branded manufactures generally purchases bulk chemicals or biological products and manufacture the product, which is then formed and filled into packages and distribute to centralize sales distribution offices or ware houses. For example, Belsomra, Ambien, Lunesta etc Generic Manufacture: Generic drugs are produced and distributed without patent protection, and industry operators are not significantly engaged in the research and development of new drugs. A generic drug is defined as “ a drug product that is comparable to a brand/reference listed drug product in dosage form, strength, quality and performance characteristics and intended use.” Although the distribution process is the same, the design of the channel may be substantial different comparing to branded drugs. For example, an increasing numbers of generic manufactures are locating and forming partnerships with Indian and Chinese manufactures. Generic drugs have no patent, which lead to lower prices and lower margins. Drug example Zolpidem Wholesaler: Pharmaceutical wholesalers act as middlemen for retail drugstores. They stock brand name drugs, generic drugs and sundry items to sell to retail, hospital and......

Words: 1790 - Pages: 8

Premium Essay

Healthkart Services Stp and 7ps Analysis

...Jindal – 3B Ayaz Khatri – 13B Meenal Banga – 25B Raina Guha – 36B Sourav Chakraborty – 51B Industry Overview Competitor Analysis Market Analysis Consumer Insight STP 4P Analysis Recomen dations Business Model • All the players operating in this space are pursuing a marketplace model to sell pharmaceutical drugs. This is due to there being no legal provision for direct online retailing of drugs • These companies carefully curate their local pharmacy partners due to concerns of counterfeit drugs, misuse of customer data, misuse of drugs or poor customer service • For companies that accept orders for non OTC drugs, uploading of prescription slip before ordering is mandatory due to legal reasons General trends • Many companies including HealthKart Plus started out as an online database for comparing medicines or finding their generic substitutes before eventually expanding into an online pharmacy • The rate of expansion is very slow and these companies just operate in a handful of locations • Lot of new companies entering this space in the past 3 years • Organized pharmacy chains just one % of the mammoth Rs 60,000 crores drug retail market • Online pharmacy started 2-3 years back, still in early stages with a few players in the market Lack of well defined regulations • There are no defined regulations related to functioning of online pharmacies in the IT Act 2000 • In addition, companies can face a penalty of upto Rs. 5 Crore if found indulging......

Words: 1598 - Pages: 7

Free Essay

Biosimilars and Healthcare Costs

...Biosimilars – Does it reduce healthcare cost or not? As the US healthcare costs are skyrocketing, the legislators are making intensive efforts to find new ways to reduce them. One approach is to reduce the high cost of biologic drug products. Having the intention to reduce healthcare costs, the Congress established an abbreviated approval pathway for biosimilars as part of the Affordable Care Act (ACA), which became law in March 23, 2010. The Affordable Care Act authorized the US Food and Drug Administration (FDA) to develop regulations for the approval of biosimilars. As a matter of fact, the benefits of biosimilars to all its stakeholders seem modest due to the complexity of biological molecules, challenging manufacturing processes, expensive clinical studies and the barriers to market access. Unlike chemical-based prescription drugs, biologic drugs are derived from living cells. They are used to treat cancers, immunological diseases and other chronic illnesses. Biosimilars are generic versions of biological drugs that are similar to innovative biological drugs. The Patient Protection and Affordable Care Act (PPACA) became law in 2010. Section XII of the law allows an abbreviated approval pathway for biosimilars. FDA is currently developing a specific regulatory route to govern the abbreviated approval process for biosimilars. There are no biosimilars approved in the US under the law yet, but more than 17 Investigational New Drug (IND) Applications for biosimilar......

Words: 1491 - Pages: 6