Big Pharma Practices & Profits Continue Driving Up Drug Prices
Big Pharma Practices and Profits Continue Driving Up Drug Prices
Affordable health care continues to be under siege with 41% of Americans seeing their prescription medication costs rising in 2023 with nearly 36% claiming difficulty paying for them, according to GoodRx. That’s on top of new drug launch prices surging by a staggering 20% annually between 2008 and 2021.
But here's the kicker: the bulk of these price hikes aren't driven by innovation or improved efficacy – they're fueled by pharmaceutical companies that set the prices and are prioritizing profits.
It's time to shed more light on Big Pharma’s practices and hold them more accountable for their profit -- not patient -- first practices. From banning copay coupons to cracking down on pay-for-delay schemes, meaningful reform is long overdue. Patients deserve access to affordable medications, especially when it’s clear why prescription prices are carelessly skyrocketing at the hands of their creators.
Relentless Price Hikes
Pharmaceutical companies routinely raise drug prices, with predictable hikes occurring in January and July each year.
In 2021 alone, brand drugs saw prices soar by an average of 4.6% in January, followed by another 3.5% increase in July. This relentless gouging knows no bounds, with drugs without rebates leading the charge – accounting for a whopping 93% average price hike among the top 20% increases.
While ordinary folks struggle to afford basic healthcare, these corporate giants are making life-saving medications increasingly out of reach for those who need them most. The median list price for a year's supply of a new brand name prescription drug: a jaw-dropping $220,003 in 2022, compared to just $2,000 back in 2008.
Patent Abuse and Delay Tactics
A calculated, and anti-competitive tactic is to keep generic options from hitting the market by filing a slew of patents even after a prescription is approved.
Across the top 10 selling drugs, there are 74 granted patents per drug with 66% filed after FDA approval, that has led to a 68% increase in branded drugs since 2012. Further proof of the impacts of this practice is that three of the top 10 drugs that face zero competition can rake in a mind-boggling $167 billion before facing any challengers.
Then there’s the practice of pay-for-delay schemes, where brand drug companies pay off generic competitors to keep affordable alternatives off the market. These under-the-table deals increase drug spending by billions every year and in turn cost patients in their pockets.
Influence of Direct-to-Consumer Advertising (DTC)
The pervasive influence doesn't stop there – direct-to-consumer advertising (DTC) bombards airwaves and screens with slick marketing campaigns, to the tune of $6 billion annually. And surprise, surprise – studies have shown that exposure to these ads correlates with increased requests for the advertised drugs, further driving up demand and prices.
Cozy Relationships and Conflict of Interest
The pervasive influence doesn't stop there – direct-to-consumer advertising (DTC) bombards airwaves and screens with slick marketing campaigns, to the tune of $6 billion annually. And surprise, surprise – studies have shown that exposure to these ads correlates with increased requests for the advertised drugs, further driving up demand and prices.
