The United States spends more money on prescription medication than any other nation in the world. Americans pay twice more for the same prescription drug than people in other high-income nations. Sky-high drug prices are making critically needed medications unaffordable and out of reach for many Americans. Big Pharma’s pricing policy contributes heavily to non-adherence to treatment regimes and is responsible for tens of thousands of patients missing out on critical medicine.
Many Americans turn to regulated and overseas-based online pharmacies or drive to Canada and Mexico to purchase more affordable prescription medication. Most people in the United States don’t understand why they have to pay significantly more for the same drug than citizens of France and the United Kingdom. American regulations and the pharmaceutical industry’s anti-competitive tactics have led to extreme drug prices in the United States.
Why US Drug Prices are the Highest in the World
Most countries have government regulatory bodies that monitor the price of medications in their country. If a pharmaceutical executive wants to sell a new drug in Canada, France, or Britain, they must set up multiple meetings with that country’s regulatory agency to negotiate the price of the product. After negotiating and agreeing to an appropriate price, the pharmaceutical company will obtain legal approval to sell its product in that country’s market.
The United States, on the other hand, does not have any regulatory body or agency to set or control drug prices. American pharmaceutical laws allow drug companies to set whatever price they wish for their products. As a result, pharmaceutical companies price their products as high as the market can bear to generate maximum profits. Lack of drug price oversight has resulted in exorbitant medication costs that are unaffordable for many Americans.
Big Pharma Monopoly
Aside from a dysfunctional government policy, Big Pharma’s anti-competitive practices and monopoly in the American healthcare market is further contributing to ever-increasing drug prices in the United States. Below, we’ll explain how Big Pharma uses anti-competitive tactics to kill off smaller competition and drive drug prices up in America.
How Big Pharma Keeps Drug Prices High
The pharmaceutical industry uses anti-competitive schemes to impede or prevent the entry of generic and biosimilar drugs into the market. Big Pharma practices such as patent and REMS abuse reduce generic drug competition to extend their monopolies in the market, resulting in exponentially high drug prices in the US. When people cannot afford essential medication, lives are at risk. According to a 2018 study in the Penn State Journal of Law & International Affairs, the lack of access to affordable prescriptions resulted in the deaths of 125,000 Americans a year.
Learn how Big Pharma is gaming the system to reduce patient access to more affordable drug alternatives:
REMS Abuse
Risk Evaluation and Mitigation Strategy (REMS) is a program established by the FDA to monitor drug safety. The FDA requires REMS as a condition for new drug approval and to continue selling the drug in the American market. For generic drug approvals, the FDA requires samples from brand-name drug manufacturers to conduct bioequivalence testing. Big Pharma refuses to supply samples needed for FDA testing, using patent rights and distribution restrictions as an excuse to prevent the approval and entry of generic equivalents to the market.
Patent Abuse
The American patent system protects intellectual property to encourage discovery and innovation. Patents have contributed significantly to scientific and technological innovations in the United States. We can thank patents for innovations in health technology, such as telemedicine, which helps patients visit healthcare providers virtually from the comfort and convenience of their homes to diagnose and treat their condition.
In the United States, patent laws prevent others from profiting from your discovery or innovation for 20 years. But Big Pharma’s anti-competitive schemes enable them to profit from the system for 38 years. Brand-name drug manufacturers file multiple patents for their best-selling medications to extend their monopoly and prevent more affordable drug alternatives from entry to the market. On average, 71 patents were granted for each of the top 12 best selling drugs in America.
The anti-competitive practice of “over-patenting” popular medications delays generic drug manufacturing and extends Big Pharma’s monopoly over the market, leading to skyrocketing healthcare costs.
Increase Competition to Decrease Drug Prices
The American people will continue to suffer until lawmakers pass new regulations to end Big Pharma’s anti-competitive schemes and patent abuses. Limiting Big Pharma’s monopoly allows generic drug manufacturers to supply the market with more affordable, FDA-approved medications, increasing patient access to life-saving medicines.
Need A Massage? Learn How To Give One To Yourself And Your Loved Ones
Receiving a massage, whether it’s given by someone else or self-administered, can help loosen your muscles and establish a better connection not only with your body but also with the people you love.
