The lack of regulation on price setting make these products at the mercy of its buyers. In an article which came about, 6 Reasons Why Prescription Drugs Are so Expensive, a pharmaceutical company, Turing, raised the price of a single pill Daraprim, to help treat a rare infection, to $750.00. Hillary Clinton called it “price gouging” and other medical groups commented on the increase. Since 2008, the prices of widely used prescription drugs increased 128%. Although pharmaceutical companies claim prescription drugs save money because it prevents hospitalization, that can change soon. New drugs for cancer, Hepatitis C and other rare disorders can cost consumers $100,000 or more annually or just a course of treatment. The factors behind the continual increase in price are lack of price regulation, patents lasting longer in the U.S. than in any other country, not much competition for drug makers, the drugs are geared for a smaller market so the increase is to make up for the research costs and development. “Their makers (pharmaceutical companies) generally increase their prices every year, by about 5% or more. Those increases add up and become bigger as the expiration of the patent approaches” (Johnson). Regarding the lengthy patents on prescription drugs preventing generic drugs as an option for consumers. Researching and developing a drug may take up to ten years to develop and have approved. There are fewer generic drugs coming onto the market, there is no sign the drug increase will start
The lack of regulation on price setting make these products at the mercy of its buyers. In an article which came about, 6 Reasons Why Prescription Drugs Are so Expensive, a pharmaceutical company, Turing, raised the price of a single pill Daraprim, to help treat a rare infection, to $750.00. Hillary Clinton called it “price gouging” and other medical groups commented on the increase. Since 2008, the prices of widely used prescription drugs increased 128%. Although pharmaceutical companies claim prescription drugs save money because it prevents hospitalization, that can change soon. New drugs for cancer, Hepatitis C and other rare disorders can cost consumers $100,000 or more annually or just a course of treatment. The factors behind the continual increase in price are lack of price regulation, patents lasting longer in the U.S. than in any other country, not much competition for drug makers, the drugs are geared for a smaller market so the increase is to make up for the research costs and development. “Their makers (pharmaceutical companies) generally increase their prices every year, by about 5% or more. Those increases add up and become bigger as the expiration of the patent approaches” (Johnson). Regarding the lengthy patents on prescription drugs preventing generic drugs as an option for consumers. Researching and developing a drug may take up to ten years to develop and have approved. There are fewer generic drugs coming onto the market, there is no sign the drug increase will start