Pharmaceutical costs are vital to each and everyone. A person’s life is on the line.In recent times, drugs like these, are in the market.A large number of people are n pain from the high costs of the products.It is a sad matter that hugely affects the young as well as the old people in society. It is everyone’s hope that the affected are able to take their pills without the stress of the hiked prices on their pockets or using their insurance. Below are some of the reasons why pharmaceutical prices are on the rise. Listed are the reasons why Pharmaceutical prices are through the roof.
Small or lack of existing guidelines in costs. Particularly in the US, the government is not involved in any cost regulation of pharmaceutical products. In some countries, government employees bargain each and every drug that goes in the market. Not having a proper mechanism to set the costs pays a part in the reckless pricing. The consumers stand no chance against such companies. The clients are left poor while the manufacturers are millionaires.
The competition is very low in the industry. For a large number of drugs there is very low contest within the industry. The basic drugs manufactured decades ago were very cheap, resulting in low profits. This did not attract a lot of companies and therefore they stopped manufacturing them. This resulted in one or two companies manufacturing such a product and making them key players in the industry. Therefore, it turned the prices to be on the extreme high.
The low number of shareholders in the market.A lot of new pharmaceutical products are designed for the uncommon diseases or cancer subtypes involving genetics, therefore they assist only hundreds of thousands. The manufacturers try to cover the development cost by hiking the prices. This in turn has a direct effect on the market. In instances that the market is small but the price to develop the drub is huge, the end price will be high.
The developers claim that study being done on the drugs are very expensive.Experts reveal that it may take more than a decade to research on the drugs and millions are also involved . This plays a part in boosting the costs. The individuals assigned to come up with the product spend a lot of money trying to create the product.This, as a result, causes the product to be costly and to come back with profits for the investors.
The patents last for long. The patents give manufacturing ownership to companies that make the product.The rights can go up to 20 years.This gives the company all the rights of development and pricing that later affect the industry.