High Drug Costs
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Transcript of High Drug Costs
High Drug Costs
Prices affect consumersFrom Parlamento
3
U.S. Drug Prices the Highest in the World and only getting worse
Average Percentage more that Americans pay
for brand drugs then 7 Western Nations
Source: Boston University School of Public Health – October 28, 2004
Based on formulary of 1,000+ patent drugs
2000 60% More
2003 81% More
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Amount U.S. Pays for patented drugs 2003 compared to:
Source: Health Reform Program Calculations from Patented Prices Review Board reports (Trends in Drug Prices and
Expenditures tables) Based on formulary of 1,000+ patent drugs
Sweden
Britain
Germany
Canada
Switzerland
France
Italy
58%
63%
73%
75%
87%
108%
118%
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• Out of control industry marketing
• Industry influence in government
• Quality of care compromised
• Pharmaceutical costs out of control
• Consumers can’t afford their drugs
The Problem
• Industry spends $12B/year on drug marketing to MDs ($13,000/MD)
• 90,000 sales reps (1 for every 5 MDs)
• Gifts, lunches, trips, educational grants, entertainment, free samples
Rx Marketing to Doctors
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• Even small gifts create obligation and influence prescribing decisions
• Free samples create loyalty to brand
• Doctors sometimes paid to promote expensive new drugs and off-label uses
Impact of marketing on prescribing
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• Marketing is 30% of cost of drugs
• Only 10-15% spent on R&D
• Expensive me-too drugs marketed
• 17% of cost increases due to switches to more expensive drugs
• Generics cost 30-80% less
Impact on costs
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Many Americans can't afford to fill their prescriptions
From Feji Fajardo flickr.com