Effects Of Regulation On The Pharmaceutical Industry Essay
The purpose of this paper is to outline which school (public or private) best predicts outcomes for regulations in the pharmaceutical industry. Initially, after a few incidents that led to the death of many people, regulators played a strict role in ensuring the safety and efficacy of drugs; however, as time progressed many factors such as access to healthcare, international trade barriers, the generics industry, and pharmaceutical promotion violations have made it more difficult to predict what the purpose is and what interest would a regulation serve.
In the previous cases, governments’ action or inaction was analyzed in order to determine whether regulations set in place served the public or the private interest. Each example was analyzed by the impact of the regulation on the private sector and on the general public.
The outcome analysis is as follows:
Pharmaceutical R&D Spending and Price Regulation - The Clinton administration’s introduction of the HSA falls under the public interest theory. The push for a national healthcare program was in the best interest of American public. Although the HSA failed, it still was able to regulate prices of many drugs by pressuring 111 pharmaceutical companies to keep their price increases below inflation. In addition, the HSA further pushed pharmaceutical companies to be more efficient in research and development spending and could no longer justify extremely high prices of drugs that were a result of costly…