| Why does drug research cost so much money? That | | | | concepts and early trials actually makes it to market. |
| is the question on the minds of almost everyone, | | | | On top of that even those that make it to market |
| from patients and doctors to the media and the | | | | have to be recalled at times, resulting in major losers |
| government. Over the last several decades advances | | | | for drug companies. These reasons drive up drug |
| in pharmaceuticals have transformed health care on | | | | costs. |
| many different levels. Today, more health problems | | | | Also, over the last decade the demand for |
| than ever before can be prevented, cured, and even | | | | prescription drugs has increased exponentially |
| managed for years with the help of prescription | | | | compared to the population. This means that with |
| drugs. In fact, for some people, the use of | | | | the development of more medications, the demand |
| prescription pharmaceuticals can even prevent even | | | | for each drug rises. With more treatments available it |
| costlier health care in the long run. | | | | only makes sense that this will happen. This increase |
| With more than 90% of senior citizens and almost | | | | in drug options has influenced pharmaceutical |
| 60% of non-elderly adults needing prescription | | | | companies to compete and develop alternate options |
| medications on a regular basis, the pharmaceutical | | | | for their consumers - the patients. |
| industry is booming. However, only a modest part of | | | | The cost of drug research is also influenced by the |
| the total health care spend in the United States relies | | | | types of prescriptions written. Because most of the |
| on medications. Despite this, the cost implications of | | | | more popular medications are newer, they are also |
| drug research and health care loom over the wallets | | | | higher priced. These newer, more expensive drugs |
| of the general public, insurance companies and the | | | | often replace older, cheaper solutions. With the |
| government alike. | | | | development of these new drugs also comes price |
| The drug industry's profits over the years have | | | | hikes in the retail sector. |
| become fodder for some of the most heated | | | | The cost of drug research is also affected |
| debates to date. In fact, the pharmaceutical industry | | | | significantly by advertising and marketing spend. After |
| is one, if not the, most profitable industry in the | | | | years of trying to create a drug and get approval to |
| country. So, why is this industry booming and why | | | | market to customer, pharma companies must go all |
| does research and development cost so much? | | | | out to convince customers of the benefits of the |
| There is no simple answer except stating that | | | | drug. Such propaganda often takes years of |
| several factors have come to influence the increased | | | | advertisements in mainstream channels to establish a |
| spending on drugs and drug research. | | | | drug in the market and recoup development costs. |
| The primary reason is the complexity of drug | | | | Substantial investments are made on marketing to |
| discovery and regulatory approval. Drugs often take | | | | the doctors and patients alike. These marketing |
| anywhere from 4 to 20 years to go from cocept, to | | | | schemes will directly affect patient demand and |
| execution to clinical trials to regulatory approval and | | | | physician usage. Along with branding of these drugs, |
| market launch. The process is excruciatingly slow and | | | | patent laws also contribute to the cost. |
| expensive. Only one out of thousands of drug | | | | |