The Cost of Drugs in America
What does the Video Suggest that Helps to Lessen the Cost of Drugs?
According to the video, there are three factors that help in lessening the cost of the drug including the profitability of the drug in the market, the cost of chemicals used to make the drugs, and the actions taken by the competitor firms dealing with the same drug. The CEO of Turing Pharmaceutical argues that the drug was not making any profit before he decided to increase its price; he even quotes that no company selling the drug for $10.50 a pill could ever make a profit. What this means is that the drug could be sold at a lesser price if it was making a reasonable profit for the manufacturer. The cost of chemicals used to make the drug is another factor that determines the cost of the drugs – the higher the cost of these chemicals the higher the price per pill of the drug and vice versa. Imprimis Pharmaceuticals CEO Mark Baum maintains that his company will continue selling the drug for $1 a pill by arguing that the chemicals used to manufacture the drugs are quite inexpensive. He argues that ethically at $1 the company will still make modest profits. The level of competition in the market affects the pricing of the drugs. Turing CEO argues that many pharmaceuticals out in the market charging exorbitant prices for their drugs but they are not criticized for increasing the price as his company. This implies that Turing Pharmaceuticals is simply following the market trends by increasing the price of its drugs. It also implies that were other companies lowering the prices for their drugs; his company could be doing the same.
How does It Affect the Care of Patients/your Family?
According to the article, it is evident that the circumstances in the USA prevent any sudden lowering of the cost of the drug because the pricing decision is left in the hands of the manufacturers. Failure for the American government to take lead in bargaining for drugs, failure to put caps on the cost of drugs, and high marketing costs which is because the government allows drug companies to market directly to consumers are some of the reasons the costs of drugs is ever high (Picchi, 2017). The CEO of Turing Pharmaceuticals agreed to only reduce the cost of drugs for hospitals and not for individual patients. The implication of these two statements would mean that the only way my family would get access to cheap medication is going to the hospital. Treatment through the hospital will be cheaper and will protect against the likelihood of buying cheap over-the-counter drugs made by copycats in the streets.