Enabling Competition in Pharmaceutical Markets
    By: Jeremy Mulvihill on October 12, 2018
    The United States, unlike many other industrialized nations, does not regulate the price of pharmaceutical products directly. There are advantages to this approach. The U.S. generic market is one of the most dynamic and cost-effective in the world due to competition between manufacturers. The inventor of a socially valuable patented drug may charge high prices in the U.S. market, and the ensuing profit incentivizes innovation that benefits consumers. Subsequent competition between substitute therapies, even those on patent, can push down these prices over time. Generic entry after patent expiration pushes down prices even further. This form of price discipline, generated by market forces, rewards the attributes and efficacies that consumers want. For example, if a particular drug is differentiated from its competitors in a useful way, it will be able to command a higher price. Continue Reading

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Oct, 12 2018 02:52
More competition will help drug prices drop. Research is expensive and if the companies don't have this profit they couldn't continue to produce revolutionary products.