4 April 2018
Taking Over the Pharma Industry
The name pharma is a suffix for Pharmaceutical industry. Pharmaceutical industry is a billion-dollar investment and most of pharmaceutical industry are privately owned companies. Pharmaceutical industry plays a great role in manufacturing and distributing drugs. On the satista magazine it labeled the United States pharma industry is the most important global market and alone by itself cover more than 40 percent of the global drug manufacture and distribution (Peng). This shows that the United states pharmaceutical industry plays a great role in providing prescribed drugs to the world, to solve the shortage of drugs in other part of the world. Also, pharmaceutical industries are a huge revenue industry that are placed for huge amount of profit. The national pharmaceutical industry need to be under the control of the government.
Many will argue that Pharmaceutical prices reflect massive development expenses. Creating just one new drug is an extremely expensive, time-consuming process, usually costing several billion dollars and taking at least a decade. And the failure rate is sky-high: Drug scientists test thousands of promising compounds for everyone that’s turned into a marketable product.
Companies are willing to make such a risky investment because a breakthrough product can generate a huge payoff. But price controls squeeze that payoff. They prevent drug firms from charging prices commensurate with those massive development costs.
For some companies, the payoff is no longer worth the risk, and they’re forced to scale back on new research. The U.S. Department of Commerce calculates that price controls among countries in the OECD, a major economic organization comprising much of Europe, drives away $5 billion to $8 billion in potential pharmaceutical development investment every year. That prevents the creation of new drugs approximately three to four drugs annually.
A reason why the pharmaceutical industries need to be under the control of the government is that the regulation of the market access and promotion of the drug’s safety and efficiency is uncertain. In the FDA consumer magazine an article written by Michelle Meadows claimed that the 1962 amendments to the FDA act gives more power to the FDA in order to review safety, efficiency and promotion. Also, the author stated that the FDA isn’t doing enough job to control the pharmaceutical industry because the industry is already dominated the market. This safety and efficacy control are creating a consequence on launching new drugs to the market. Some studies show that every time there is an evaluation in the pharmaceutical industry the pharma companies create a shortage and spike the cost of the drug in the market system. This system made the pharmaceutical industry untouchable but if the government take over the industry there would be no shortage in manufacture and distribution of the drug beca...