Why are some medicines so expensive?
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Why are some medicines so expensive?
The simple explanation for excessive drug prices is monopoly pricing. Through patent protection and FDA marketing exclusivity, the U.S. government grants pharmaceutical companies a monopoly on brand-name drugs. But monopolies are a recipe for excessive prices.
Why do drugs have different prices?
Why are pharmacy prices so different? A number of factors play into how pharmacies price their drugs. This can include their business costs (overhead), profit margins, and prices charged by pharmaceutical companies. Those prices are proprietary information, which means they’re usually kept confidential.
Why is drug development so expensive?
The increasing complexity of advanced medicines and investment into treatments which do not end in success makes R&D more expensive – a factor that is contributing to the rising cost of prescription drugs.
Why is generic medicines cheaper?
Once the patent expires, other manufacturers duplicate and market their own versions of the drug. Since the manufacture of these generic drugs do not involve a repeat of the extensive clinical trials to prove their safety and efficacy, it costs less to develop them. Generic drugs are, therefore, cheaper.
What is the difference between generic and branded medicines?
While brand name drug refers to the name giving by the producing company, generic drug refers to a drug produced after the active ingredient of the brand name drug. Generic drugs will, however, be sold under different brand names, but will contain the same active ingredients as the brand-name drug.
Which pharmaceutical company makes the most money?
Top pharmaceutical companies with revenue over $10 billion
| Rank | Chg | Company |
|---|---|---|
| 1 | Johnson & Johnson NYSE: JNJ | |
| 2 | 1 | Sinopharm SEHK: 1099 |
| 3 | 1 | Roche SIX: ROG |
| 4 | 7 | Pfizer NYSE: PFE |