Pharmaceutical prices are crucial to everyone’s livelihood. One’s life is at stake.In recent times there seems to be a significant rise in such products. A big numbers of individuals are in distress over the matter because they use the products to ease their pain or get cured from their diseases .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.
Little or no regulation of prices.Especially in the US the regime is not in charge of setting the rules of costs of the products.A lots of countries send their officials to bargain each drug going in the market.Lack of a pricing ceiling largely affects the way the pharmaceutical companies set the prices. the none existence of a cost ceiling has a great impact on the expenses of the drugs. The consumers stand no chance against such companies. The consumers suffer while the companies become profitable.
The competition is very low in the industry. a number of drug problems there is little contest in the market. The generic products used in the past were usually very cheap and thus yielded low profits. This was not good for upcoming companies and they decided to stop manufacturing them. This resulted in one or two companies manufacturing such a product and making them key players in the industry. This as a result made the prices be very high.
The undersized market dimension. A lot of the drug products are designed to assist people suffering from special type of illnesses making them affect only a few people. To surpass the high manufacturing costs they set the prices high. This as a result affects the prices in the industry. In instances that the market is small but the price to develop the drub is huge, the end price will be high.
The producers of the drugs say that it is very pricy to research them.The professionals tell us that it can take up to ten years and over a billion dollars for a single product to be approved . This is one of the grounds of hike prices.The researchers spend millions in the lab in coming up with the drug. This is considered one of the reasons the prices have to be high so as to meet the expenditure.
Patents have long duration The patents give manufacturing ownership to companies that make the product. The ownership rights can last for decades. That makes the manufacturer the sole owners of the development process.