Prescription Drugs Infographic
It’s not surprising anymore that healthcare in America is one of the most expensive in the world. Also, not to mention their prescription drugs.
A lot of people wonder why prescription drugs are expensive in America, and you’re about to know why.
The high price of drugs in America is in line with the fact that the pharmaceutical industry generates the most profit of all businesses in the U.S.
Moreover, The U.S. spends the most on prescription medicine, as much as $234.356.
Keep reading to discover why prescription drugs are expensive in the country.
Why are Prescription Drugs Expensive in The U.S?
There are underlying reasons why prescription drugs are expensive in the U.S. Every reason makes a solid sense why Americans need to dig deep into their wallet.
Research and Development
Above anything else, the pharmaceutical industry needs comprehensive research and preparations before developing drugs.
With that in case, the cost to undergo research and development processes is sky-high.
The estimation varies from low $44 – $60 million to up to $12 billion per drug approved. Moreover, getting FDA approval also requires a big budget.
Lobbying
Big pharmaceutical companies spent around $1.5 billion from 1998 to 2008 on lobbying. The numbers must have skyrocketed in recent years.
Marketing
Pharmaceutical industries need to make marketing efforts to expose and market their products. The pharmaceutical industry spent $57.5 billion just on promotion in 2014
Lawsuit
Another factor that makes prescription drugs amazingly expensive is lawsuits. Some of the most costly significant pharmaceutical company settlements in the U.S. were:
- Glaxo Smith Kline
$3.000.000.000 (2012)
- Pfizer
$2.300.000.000 (2009)
- Johnson and Johnson
$2.200.000.000 (2012)
- Eli Lilly and Co.
$2.420.000.000 (2009)
- Merck & Co.
$650.000.000 (2008)
- Bristol-Myers Squibb
$510.000.000 (2007)
- Cephalon
$425.000.000 (2008)
Conclusion
As you’ve read the above reasons, it is clear why prescription drugs or medicine in the U.S. has become the most expensive in the world.
Some processes and procedures for developing medicine require big budgets. Moreover, pharmaceutical companies need experts and expensive resources to develop drugs.
If you want to know more about prescription drug prices in the U.S., see the infographic below.
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