Medicine and Money: What You Need to Know About Drug Price
Medicines are an essentiality in the world. The purchase of medications, whether online or in-store, occurs every second worldwide. Medicines help treat any kind of ailment. Due to inflation and recession on a global scale, the price of medicines also fluctuates as well as products in other markets and industries. Pharmaceutical companies invest resources in discovering and preparing new medicines. Now let’s talk about how medicine in conjunction with pricing plays a different role in marketing and customer reach.
Variation in Drug Pricing
There is always variation in all the products of the world depending on the brand and quality. Even in the pharmaceutical industry, there are different price tags for the same medicine and chemical configuration manufactured by various brands. Let us understand the reasons for such variation in the pricing.
Research and Development(R&D): The reason for the variation in pricing depends on the process from manufacturing to dispatch of the medicine. Pharmaceutical companies spend a lot of money discovering the resources and finding new drugs to solve new diseases.
Brand and generic: The difference in the product of the brand name and generic is another reason that will cause variation in pricing. Brand name medicines include the research and then followed by manufacturing which is usually high in pricing, whereas the generic one uses the same ingredient formula as the brand which does not have R&D cost involvement and hence sells the medicine at a lower cost.
Marketing: After manufacturing and packing one has a major task of marketing through which people will gain awareness of the new medicine to heal the diseases. The final price tag of the particular drug includes all the expenditures involved in an average. Competition in the market also adds value in a decrease or increase of the price if there is more competition the brand must decree the price to sustain in the market which makes people more affordable.
Patenting: The pharmaceutical companies have the patent granted on the drug for the innovation, during which the generics are not permitted to make alternatives of the same. Hence allowing the brand to make existence and also to get a return on investment.
Availability in the region: Regional availability of medicine also contributes to the pricing of medicine. Where there is more availability and stock in the market region will result in lower prices and vice versa. Even the import and export parts add more to the price variation, which includes tax duties and the high price.
Adding to this, other factors like the online availability of facilities and medical stores can also make a slight difference in the cost. Depending on the severity of the disease medication cost also will change. For example, the treatment and medicine used the medication of cancer are more expensive than the normal disease making it less affordable to common people. Hence there are huge risks and maintenance costs involved in the pharmaceutical industry.
Along with pharmaceutical medicines and drugs, there is also involvement with particular types of equipment and advanced machines which then in turn adds to the pricing costs. Certain strategies can be used to make the medication cost-effective they are the utilization of generic medicines and transparency in the drug pricing that can give a clear picture to the buyer to compare and choose the right product. International collaborations can be done which will share and reduce the research and development costs, which can lead to reasonable drug pricing and customer affordability.
In conclusion, the variation in the cost of pharmaceutical medicines and treatment equipment might have several reasons associated but the main and basic cause is to save the lives of people. No matter what is the price of the medicine, one will buy it to survive but the pharmaceutical industries must not take advantage of the purpose. Although the price of drugs and medicines in the market and industry fluctuates due to inflations and recessions globally, medicines are essential for people every single day.