It seems that everywhere you turn, somebody is pushing for Pharma reform. The pharmaceutical industry, it turns out, is one of the most heavily regulated industries in America. Large pharmaceutical corporations, many of which are headquartered in New England, are adamantly opposed to pending legislation to reduce drug costs. They argue that reducing their revenues through less stringent regulation will result in a drop in the investment in the discovery of new drugs and medical research, and thereby reduce the output of pharmaceutical products.
To address these concerns, some groups in the medical field are calling for Pharma reform legislation. One such group is the American Association for Clinical Chemistry, which is headed by Gregory A. Smith, M.D. Smith is an independent board member of the organization. His group is particularly concerned about the impact of recent clinical trials on the price of new drugs, particularly the costly Accutane medication.
Some other members of the medical association have been critical of how the Pharma industry conducts business, too. In January, for example, the American Medical Association released a report that faulted pharma companies for hiking prices of medications in response to new regulations regarding pricing of prescription medications. And in November, the American Society of Clinical Oncology criticized what it called “price gouging” by several major pharmaceutical companies during a presentation at the American Association for Retiatric Cancer and Nutrition Annual Meeting.
Concerns about the price of medicines have also surfaced in Australia, where the government recently announced a plan to reduce the cost of generic and brand-name drugs. In the United States, the Medicare program, the primary payer for hospital stays, owns shares in the majority of pharmaceuticals that manufacture treatments for seniors. Many of these drugs are manufactured by generic companies that are foreign-owned. In response, the American Association for Retiatric Cancer and Nutrition has urged members to contact their representatives about the impact of Pharma acquisitions of generic drugs on the cost of treatment for cancer patients.
According to pharmaceutical industry experts, the slowdown in the growth of the economy is having a significant impact on the amount of attention pharmaceutical companies’ focus on research and development. For several years, drug pricing has been based on the assumption that the benefits of new drugs would pay for their cost via the consumer’s out-of-pocket medical expenses. However, in the past few years, many health insurers have been reducing or eliminating the benefits completely. As a result, pharmaceutical research and development budgets have been scaled back, affecting both the number of new drugs being developed and their costs.
Because of these factors, many analysts predict that the total amount of investment in biotechnology and related fields will continue to grow at a slower rate in the coming years. What does this mean for Pharma companies? While it may mean that they will be less exposed to the price increases of new drugs, it may also mean that they will see less drug recalls and overall savings in the long term. If you are a pharmacy owner or manager, it is important that you understand the impact of these changes to your business as well as how they could affect your profitability. By weighing all of the advantages and disadvantages of biotechnology and new drugs, you can ensure that your company is able to adapt to changes in the pharmaceutical market so that it can remain a strong and competitive force in the market.