Sharon Chhanai
Pharmaceutical
Pharmaceutical industry develops medication and vaccines to prevent and treat diseases. According, to Freedonia "recent study showed that drug delivery products in the U.S is projected to reach $251 billion by 2019". "Due to increase chronic diseases there has been pressure on healthcare budget where demand for drugs increases the price by pharmaceutical industry". "There has been concern about drug overcharging for generic drugs and this is influencing international markets such as Japan and Germany to establish tighter price controls on new medicine". "There are future opportunities for the pharmaceutical industry such that there will be 220 drugs expected to be introduced in market by 2021". Most of the drugs will be outsourced and increased outsourcing manufacturers in the sum of $105.0 billion by the year of 2021. It cost a pharmaceutical company 2 billion to make a drug and market it patent for sale however that company has 20 years to make their money from the drug or else the patent will expire. If the patent expires and the company doesn't recover their profits then the company will incur losses without making the money they use for their invention. Also, after 20 years and the patent expire the drug becomes generic which sells at cheaper price." Expiring patent means increase competition within the generic drug companies, slower sales growth rates and tighter regulatory review and standards If a drug is in demand in the market it is not against the law if that company increase their drug 500%. For example, the epi pen is in great demand because without, people may get allergic reaction which will ends in death of the person. Because it is in demand the company will increase their price because patients are in need for it so they have no other choice but to purchase the drug. Sometimes company makes a drug to treat a disease but somehow works for another disease this is called Rediscription. For example, should a company make a drug to treat asthma and it doesn't work but it works for cold then the pharmaceutical company will change the drug name and sell it as medicine for cold. Pharmaceutical focuses on making profit and creates drugs for what the market needs rather than focus on the drugs to help fight diseases such as cancer. There is a relationship between the doctor and pharmaceutical such that if the doctor should prescribe the drugs to his patient and get them sell he or she will get compensated for it. This however causes a problem because the doctor will over prescribe the drug to his patient. This is the problem we face in this country with the opioid epidemic, doctors overprescribing pain medication and patient being hooked on it.