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Healthy Skepticism Library item: 8574

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

 

Publication type: Journal Article

Stahel AI.
Time for decision
Australian Journal of Hospital Pharmacy 1976; 6:(1):20-21


Abstract:

The pharmaceutical industry in Australia has not been able to stabilize profitability because increased costs over the past several years have not been offset by the opportunity to increase prices. Because the budget for drugs on the National Health Scheme has in fact been reduced for 1975/76, the pharmaceutical industry is not able to gain price rises from the Health Department. Its share of the total cost of prescription items is 45.24% compared with 46.6% for the pharmacist if the item is on the National Health Scheme. The pharmacist’s share rises to 62.8% if the item is privately dispensed. Greatly increased costs of development, marketing, testing and distribution mean that the industry is hard pressed to remain profitable. In an effort to help the industry, pharmacists are urged to come to an agreement with the industry over standard pack sizes and presentation.

 

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What these howls of outrage and hurt amount to is that the medical profession is distressed to find its high opinion of itself not shared by writers of [prescription] drug advertising. It would be a great step forward if doctors stopped bemoaning this attack on their professional maturity and began recognizing how thoroughly justified it is.
- Pierre R. Garai (advertising executive) 1963