PDs and Economics

Suggestions to control prescription drug prices include re-importing medications from Canada or for the government to implement price-capping on expensive pharmaceuticals. For nursing and health care leaders to make informed decisions about this issue, it is important to understand the current role of government in health care as well as the economic issues related to the prescription drug market. To meet that objective, the current role of government in the health care system, the market forces involved in the prescription drug industry, and possible outcomes from allowing the re-importation of medications from Canada are examined http://findarticles.com/p/articles/mi_m0FSW/is_6_23/ai_n17211609/pg_3?tag=content;col1.

The Goverment is working on other health care outlets when it comes to buying and producing prescription drugs. Relevant to prescription drugs are patent protection laws that provide a government sanctioned limitation on competition through a legalized monopoly. Pharmaceutical companies that develop new drugs can apply for the same patent protections available to other industries; just as a computer chip manufacturer can patent a new chip design, drug companies register new medications in an effort to protect investments in research and development. This legal monopoly creates implications that not only affect the drug market, but also influence the entire health care industry and have recently begun to play an increasingly important role in government policymaking.

Having received patent protection for a certain medication, the company has the ability to set its own price; without competition, there is no downward pressure on the price from other potential drug suppliers. The monopoly power gained from patent protection provides incentive for drug companies to invest the large amount of capital needed for R&D by allowing them to earn more than what would be the result from a more competitive market. Without patent protection, other companies would copy the drug formulation at a cost much less than the initial outlays of R&D by the original firm. Companies seeking to earn a profit from entering the market for this medication would start producing the drug and the resulting competition would drive the market to a more competitive outcome where the market, instead of an individual company, determines the price. In this scenario, where one company incurs large fixed costs through R&D while other companies have minimal fixed costs, there are few incentives to develop new, innovative drugs.

In contrast, generic medications (those not protected by patents) have the potential of being produced by any pharmaceutical firm that believes it may earn profits in the market. These firms do not have the outlay of R&D involved in creating a new medication, but only face the costs associated with reproducing and marketing a proven medication. The companies producing generic equivalents have a much lower average cost and can therefore still make a profit while offering a lower-priced product to consumers. When a drug's patent expires and generic substitutes appear on the market, economic theory predicts that there should be a decrease in the price of the medication as long as other factors, such as product demand, do not change.

In review, the high costs of prescription medications derive from market forces as well as government intervention. Patented medications benefit from a government sanctioned monopoly and the producers of these medications are able to set prices where they believe profit potential will be greatest without facing lower prices from competitors. In this way, they have the opportunity to earn enough revenue to cover the fixed R&D costs as well as the costs of producing and marketing the medication. Since a single company will market a patented drug, it will face the entire market demand curve; while holding other factors constant, increasing demand for a product will increase the price. Companies may increase revenue and profit potential by aggressively marketing to likely users of the medication and to physicians who will prescribe them. And since firms are aware that patent protection is for a limited amount of time, they will likely attempt to establish market share and recover R&D costs before generic medications are available to compete in the market. However, without the incentives provided by the initial patent protection, a company that believes that it cannot cover its costs and earn a profit will not produce new, innovative products which may potentially improve the quality of life for consumers.

Prescription Drugs Found in Tap Water

Think you know whats in your drinking water? Its Just good old hydrogen and oxygen? Think Agian. According to Associated Press (AP) a vast array of pharmaceuticals including antibiotics, anti-convulsants, mood stabilizers and sex hormones have been found in the drinking water supplies of at least 41 million Americans, an Associated Press investigation shows http://www.foxnews.com/printer_friendly_story/0,3566,336286,00.html.
To be sure, the concentrations of these pharmaceuticals are tiny, measured in quantities of parts per billion or trillion, far below the levels of a medical dose. Also, utilities insist their water is safe. But the presence of so many prescription drugs and over-the-counter medicines like acetaminophen and ibuprofen in so much of our drinking water is heightening worries among scientists of long-term consequences to human health.

The big question is How Do These Drugs Seep In? http://www.epa.gov/No one plotted to dump prescription drugs into U.S. water supplies. The drugs got there on their own, with a little help from the human body. It works like this: Doctors prescribe drugs to patients, who swallow the pills. The body doesn't completely absorb some drugs, though. When nature takes its course, traces of the drugs pass through people's bodies, down toilets, and into sewers. The sewer water is treated and returned to rivers and reservoirs. City water systems later take some of that water to treat and use as drinking water. Treatment plants filter out most impurities, but the plants don't catch all of the drugs. That's how tiny amounts of drugs get into tap water, which people drink.

Prescription drugs are a big business. People in the United States take more drugs today than ever before, 3.7 billion prescriptions' worth. When drugs get old, some people flush them. That's a bad idea. People aren't the only users contributing drugs to the water supply. Farm animals are given antibiotics to keep them healthy. Dairy cows are given hormones to help them make more milk. Those drugs pass into the groundwater and into city water supplies. Chemicals from factories and golf courses wash into the water too.

Prominent Pharmaceutical Figure

Dr. Veerappon Subraanian has been a prominent figure in the pharmacutical industry since 1997. Dr. Subramanian brings extensive experience in generics formulation and management, having been responsible for the development and FDA approval of over 150 specialty and generic drug products during his 33 years in the pharmaceutical industry. He was the founder and Chief Executive Officer of Kali Laboratories, Inc., a specialty generic pharmaceutical company, which was acquired by Par Pharmaceuticals in 2004 for consideration in excess of $135 million. Prior to Kali, Dr. Subramanian was the Vice President of Scientific Affairs for Zenith Laboratories, Inc., which was acquired by Ivax Corporation, in 1994, for approximately $600 million.
As part of its Strategic Alliance with Dr. Subramanian, Novel Laboratories, Inc. was formed as a separate specialty pharmaceutical company for the research, development, manufacturing, licensing and acquisition of specialty generic pharmaceuticals. Novel Laboratories will utilize Dr. Subramanian's expertise and established track record of building successful pharmaceutical companies and will develop a new portfolio of products, independent of Elite's current pipeline. Dr. Subramanian will serve as Chief Executive Officer of Novel Laboratories, which is owned 49% by Elite and 51% by VGS Pharma LLC, a company controlled by Kali Management, LLC. The Board of Directors of Novel Laboratories shall consist of two directors with Elite and VGS Pharma having the right to name one of the two directors.
"This Strategic Alliance provides Elite with a rare opportunity to join forces with a highly accomplished formulator and experienced business executive in the generic pharmaceutical industry. As the Chief Executive Officer of Novel, Dr. Subramanian will oversee the development and commercialization of Novel's generic and specialty drug pipeline. In addition, we look forward to Dr. Subramanian's service on Elite's board and his strategic advice in support of Elite's existing product pipeline. This will enable Elite to enhance its focus on its abuse resistant and controlled release opioid pain products, while maintaining a strong presence in the specialty generic drug industry through its interest in Novel," said Bernard Berk, Chairman and CEO of Elite Pharmaceuticals.

Elite Pharmaceuticals is a specialty pharmaceutical company principally engaged in the development and manufacturing of oral controlled-release products. The Company's strategy includes developing generic versions of controlled release drug products with high barriers to entry and assisting partner companies in the life cycle management of products to improve off-patent drug products. Elite's technology is applicable to develop delayed, sustained or targeted release capsules or tablets. Elite has one product currently being sold commercially and a pipeline of eight drug products under development in the therapeutic areas that include pain management, allergy, cardiovascular and infection. The addressable market for Elite's current pipeline of products exceeds $6 billion. Elite also has a GMP and DEA registered facility for research, development, and manufacturing located in Northvale, NJ.

Pharmaceutical History

Between 1818 and 1822, more than a half dozen enduring fine chemical manufacturers were founded in the Philadelphia area. This was the beginning of the modern pharmaceutical industry as we know it. This movement showed the shift from the manufacturing of medicines in the laboratories of pharmacies to the construction of manufacturing plants for this purpose. During this time, doctors and pharmacists compounded and administered medicines to patients and drug reactions were observed. Robert Shoemaker is thought to be the first large-scale manufacturer in Philadelphia during the period between 1818 and 1840, with the production of glycerin.
As the industry evolved, it became more important to regulate the production of pharmaceuticals. In 1902, Congress passed an act to control the production and sale of biologicals, and to regulate the sale of viruses, toxins, serums, and analogous products. Four years later, in 1906, the Pure Food and Drugs Act was passed to standardize the state regulations. The purpose of the Food and Drugs Act was to provide the Department of Agriculture with the legal power to enforce reasonable standards of purity for processed foods.
The Food and Drug Act was also important in that it added the scientific mission of the Division of Chemistry, which eventually evolved into the Food and Drug Administration http://www.fda.gov/ (FDA). FDA is a scientific, regulatory, and public health agency that oversees most food products, human and animal drugs, therapeutic agents of biological origin, medical devices, radiation-emitting products for consumer, medical, and occupational use, cosmetics, and animal feed.

The Pharmaceutical industry has a great impact on the medical field and tends to over use its authority. This industry at times is very sneaky and manipulative. For example Marcia Angell writes in her book The Truth About Drug Companies that "drugs are the fastest-growing part of the health care bill which itself is rising at an alarming rate." Dr. Angell argues that patients are spending more on drugs simply because they are being prescribed more drugs than ever before and that "those drugs are more likely to be expensive new ones instead of older, cheaper ones, and that the prices of the most heavily prescribed drugs are routinely jacked up, sometimes several times a year."

Also pharmaceutical companies spend more money on marketing than research according to ScienceDaily,http://www.sciencedaily.com/ a "new study by two York University researchers estimates the U.S. pharmaceutical industry spends almost twice as much on promotion as it does on research and development." Despite pharmaceutical companies' claims that Americans pay such high prices for prescription medications because they're really paying for research and development costs, the industry spent $33.5 billion on promotion costs in 2004. The study also "supports the position that the U.S. pharmaceutical industry is marketing-driven and challenges the perception of a research-driven, life-saving, pharmaceutical industry" that values the lives of its patients, rather than their spending habits.

Credible/non-credible Pharmacutical Sources

Common dreamshttp://www.commondreams.org/views/080700-101.htm is a website the discusses in detail the reason why prescription drugs are so expensive. When the website page is printed it prints up to three pages. It may seem short but it gives accurate information. The logo for the website is the world. This sends a message that states that this issue affects all walks of life.
What I found out was manufactors of these drugs hold a great position in perscription drug cost and the goverment has done nothing. For example The theory behind this initiative is simple and consistent with tripartisan legislation introduced in the House last year by Representatives Marion Berry, an Arkansas Democrat, Jo Ann Emerson, a Missouri Republican, and myself. The pharmaceutical manufacturers sell their products in many other countries for 30 to 50 percent less than in the United States.
By eliminating the federal law that gives these manufacturers a monopoly over prescription drug importation, competition will end the discriminatory prices, and the cost of prescription drugs will plummet in the United States at no expense to the taxpayer.
The bad news is that as this legislation moves to a conference committee, where differences between the House and Senate language will be worked out, the drug companies have launched an all out, multimillion-dollar lobbying and advertising campaign to protect their lucrative monopoly and to defeat this legislation. There has been a deafening silence on this issue from the Republican congressional leadership and the Democratic White House - both of which are recipients of large sums of pharmaceutical industry money. In other words, despite the strong desire of the American people to see lower prescription drug prices and the support of the vast majority of members of Congress for serious legislation to accomplish that goal, the pharmaceutical industry could well win because of the hold it has over the leadership of both parties. It is quite possible that the Republican leadership in Congress will not allow this legislation to come to the floor for a vote and equally possible that the White House will not demand that they do so.
The information is very detailed and is supported by facts.
Although there are some non-credible websites when it comes to information on prescription drugs. These websites are for self gain from the company or individual who published the information, they do not have the consumers best interest at heart. For example a website such as medrex-one http://www.medrx-one.com/ a website where if you have a credit card you can get any kind of drug. This is also unsafe because teens can get hold of their parents credit cards and order dangerous drugs. Teens using prescription drugs for personal harm is an issue that pharmacies along with the government are trying to control. The advertising is people friendly. They have a picture of a suppose to be pharmacist smiling holding the phone as if she is talking to a customer on the phone. There are also pictures of popular medications on the page.

A Personal Connection

Prescription drug cost became an important topic to me when I decided to become a pharmacist. Pharmacist are the second most trusted health care professionals. When patients are not able to reach their doctors they automatically call their local pharmacist. It came to me one day while watching the news, the topic was prescription drug cost on the rise. Then I made a personal connection with my aunties Clairea and Clietus, whom had just returned from the pharmacy and were complaining about how they barely had any money left over for other items after paying for their medication. It`s not fair that any individual or family should have to choose between getting a prescription field or replenishing the refrigerator.
Recent work with Oprah Winfrey O- Ambassadors http://oambassadors.org/global a program dedicated to helping developing countries such as West Africa in the areas of Health, Poverty, Education, and Sustainable Development. My focal point became health because many people die from many diseases in West Africa such as Aids, and Malaria because medication is scarce. As I began to research I thought would could be done to help the issue. I came up with idea of a non-profit pharmaceutical organization that caters to the needs of residents of West Africa especially the children. This program would be able to get medication and supply it to affected areas in West Africa. Many people don`t realize how important it is to have a global impact on the world around us. O-Ambassadors made these issues more known to the public so a solution could come to pass to help these problems.

Just because Africa is on the other side of the world does not mean that their problems are not ours because we are one world and we have to take care of it. This is the goal of the O-Ambassador program to bring about change and to raise awareness. It is also important to help because many of the items we use are made in countries like West Africa. The overall point I am trying to make is when it comes to resources,we Riley on each other for support, for example trading one good for another.

Why Are PDs So Expensive

It is outrageous how expensive prescription drugs cost. It makes one wonder why? Drug companies argue that the high prices reflect the costs of the years of research and development necessary before a new drug makes it to the market. It costs an average of eight-hundred- million and takes twelve to fifteen years before a new medicine makes it to drug store shelves. Research was conducted by Tufts University Center for the study of Drug Development, which found that the total costs of R&D to bring a new drug from discovery to FDA approval for marketing is eight-hundred-two-million.
Although prescription drugs account for only ten percent of Americas health care costs, spending on these drugs has been rising far more rapidly than other health care components. Much of this increase is due not to price increases, but to a higher rate of drug use. As more people live longer and as more beneficial medicines are developed particularly for chronic conditions like AIDS and asthma prescription drugs have become a larger and larger part of the health care system. Also drug spending is rising because the companies are raising prices to increase profits, and spending more on advertising and marketing expensive brand name drugs to doctors and patients.
Prescription drug cost also vary among households. This is so because for a family or individual whom may be low income or elderly. For some elderly insurance companies such as AARP can be of assistance and can cut down the cost of certain drugs. Then there are HMOs and PPOs which are also great for working individuals and there families.
Furthermore there are unanswered questions such as why don`t HMOs and PPOs cover one-hundred percent of the medication cost? Also what will it take to get the medication cost lowered and how long could it possibly take? Why dosent the government put restrictions on how much drug companies are allowed to raise prices?