1. Not all drug economic models are the same, it’s complicated

You don’t have to listen too carefully to hear the constant mantra of “lower drug prices” being shouted from the rooftops. The healthcare delivery system in the US works like most other free market environments. When profits are high (demand > supply) entities enter the market and when profit dries up (supply > demand) entities leave the market. It is no different for the manufacturing of drugs, especially for generic products not protected by a patent. As the Wall Street Journal recently reported, a case can be made for increasing the prices of certain generic injectables, especially those critical to emergency room treatments. Drug pricing, drug supply, and the development of innovative products are all linked. By better understanding these linkages we can shift the conversation from drug “prices” to drug “economics” and we think that is good for all involved.

Now don't be stingy. Share this.Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn