Pharmaceutical expenses are important to a lot of persons.They can be a matter of life and death.In recent times, drugs like these, are in the market.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. The following are the factors that affect Pharmaceutical prices.
There is zero or very little standardization of costs.Particularly in the US, the government is not involved in any cost regulation of pharmaceutical 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 clients are defenseless against such giants. The clients are left poor while the manufacturers are millionaires.
The industry has very low competitor.For a lot of pharmaceutical products there is low contest within the industry. 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 low number of shareholders in the market.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 directly affects how the market pricing on the end products will be. 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.Experts reveal that it may take more than a decade to research on the drugs and millions are also involved . This is one of the grounds of hike prices. The individuals assigned to come up with the product spend a lot of money trying to create the product. This is considered one of the reasons the prices have to be high so as to meet the expenditure.
The lengthy patents. The rights of patent are an issue that facilitates the sole rights to a company to manufacture pharmaceutical products. The ownership rights can last for decades.This gives the company all the rights of development and pricing that later affect the industry.