This Is Why We Need Discount Medicine

Medicine costs have been a stress point for those who require daily.  Can't understand why the price of the drug is so high.  However, there are objectives to help consumers by offering discounted drug plans, which can be the pain relievers of many industries.

 Understanding the industry

 There are four basic steps in the process of developing a new drug.  First, the research is funded, and once the formula proves effective, a patent is filed.  The drug is manufactured and then eventually marketed.  In these four phases, research and marketing are by far the most expensive.

 To understand the process, consider an example.  For a pharmaceutical company to create a formula that effectively reduces the pain associated with heart disease, it would cost millions in the first phase.  As a result, they cannot sell their formula at a lower price and make a profit.  The price should go up and more pills should be sold so that profit can be made, so marketing is implemented to strengthen sales.  However, marketing costs, in turn, increase the price of the drug.  Our heart pills have become reasonably expensive.

 Fortunately, many states have programs that offer free discounted medicine cards without reducing the profits of the producer.  By making deals with pharmacies, these RX cards open doors for low-income or debt patients.

 When the said painkiller arrived in the market, it was a costly but legally binding property contract, under patent.  The pharmacist owns the formula, which means that other companies cannot use the formula to compete with the patent holder.  Unfortunately for the pharmaceutical industry, patents are expiring.  When they do, off-brand or "generic" discounted drugs hit the market at dramatically lower prices, effectively removing the parent company from the market.

 In fact, the pharmaceutical industry decided in the 1990s that new formulas were too expensive.  The money was no longer spent on creating new patents, and in recent years, these patents have expired.  This creates a fight for the industry, but its results are not entirely negative.

 Good news and bad news

 For the consumer, discounted generic medicine is a major side effect of a patent expiration.  However, the downside is that the industry will normally react by raising prices of new, protected drugs to make up for the loss.  It has also been addressed by third-party groups seeking to provide better value to patients who need it.  A pattern has been created: As the market continues to change, so will new ways of providing necessary discounts to these groups.