Healthy Skepticism Library item: 8901

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

Douville AW.
Drug industry
New Physician 1971 Mar; 20:139-145

Abstract:

Prices and profits in the drug industry, advertising and drug information, and drug prices in relation to the health care system were reviewed. Compared to other industries during a recent 10-year period, the drug industry is a consistently profitable one with concentration of the market structure in a relatively few companies. Drug prices are administered often without any relationship to cost or to supply and demand. Monopolistic practices, some sanctioned by law, such as patent rights for the encouragement of innovation, others created by advertising and promotional techniques, increase the prices of drugs. Developments in the health care field which may force the drug industry to compete more on a price basis include prepaid insurance plans, the increasing acceptance of generic prescribing through formulary systems, and the expansion of governmental regulation and testing of prescription drugs.