Drug Companies Love Profits

It's not too surprising that drug companies love profit and focus on
staying in business by creating and marketing new drugs. The only
reason they stay in business is because people buy their drugs.

Unfortunately, there is a great deal of evidence that indicates drug
companies would prefer to increase their profits, rather than truly
take care of the people they are supposed to help get well or cure.
This isn't exactly something new, as it really all began when
penicillin first appeared on the market. These days however, the grab
for profits is even more pronounced, as the drug market is enormous and
billions of dollars change hands yearly.

To understand the reason for the higher prices for drugs these days
is to take a quick look behind the scenes at a drug company. They are
driven by the bottom line, dollars or die. In order to keep afloat,
every drug company has to have a new drug or two in the pipeline ready
to come off the line and be sold to the marketplace. That's the first
part of the equation.

The second part of the equation is that the drug in the pipeline,
when it is ready to be released to the public, is under patent
protection. That means they are able to charge high prices for it,
which in turn generates mega profits to develop another drug; and so
the cycle continues. However, brand name drugs do eventually come off
patent, unless the drug company re-works an old for formula and calls
it new (usually in an effort to keep generic drug manufacturers from
competing with them.)

The drug market is particularly cut throat and most brand name
manufacturers, also called Big Pharma, will go out of their way to
avoid sharing profits with the generic drug companies. Call this a
dirty deal, but Big Pharma has also been known to intentionally delay a
patent by extending it, anything in the name of protecting their
revenue pool – the consumers who need their medications.

All this means that consumers pay higher prices at the drug store
for brand name drugs that don't work any better than the generic drugs.
In fact, sometimes the old generic standbys work better than the newer
ones, which have serious side effects.

Higher prices for drugs have driven health insurance companies to
the point where they have put their foot down in an attempt to get
control over the ever-increasing cost of drugs. The tide is starting to
change, slowly, but inexorably to a preference for cheaper generic
drugs. The bottom line here is in order to keep the cost of medical
care down, buy generic drugs.

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