The Ethics of Global Drug Pricing

The Ethics of Global Drug Pricing

Introduction

The questions concerning the ethics of drug pricing are practically a new topic. In March 2005, is when discussions commenced publicly when several articles such as “The Economist” raised questions concerning this topic. It asked why is there overpricing of drugs? Are there no substitutes? These discussions have resulted in too many Americans ask themselves today: are these drugs-related organizations putting profits into considerations ahead of individuals? What is lawfully allowed is not consistently ethical business practices, particularly in the circumstance of acquiring benefits from healthcare. Law tells groups or an individual what rights they possess; ethics indicate the right actions to take. The public has put more attention on the provision of healthcare than to the business side, taking into consideration the ethics of healthcare at large. This is a trend that has started changing, as pharmaceutical institutions involve themselves in questionable activities with no outcomes for extended periods (Weber 6).

Step 1

The ethics that are primarily discussed in the case concerning drug pricing are the pricing, price discrimination, price-fixing, price skimming, bid-rigging, and supra-competitive pricing. Most of the institutions associated with drugs have raised their prices without considering the life of an average individual. They are to profits and prosperity of firms rather than the life of people. For instance, we see a case where price skimming and price-fixing is applied, in August, a company called Turing Pharmaceuticals purchased the rights of a drug known as Daraprim from Impax laboratories. This was the standard drug used by individuals to treat toxoplasmosis, a parasitic infection, which can be a life-causing problem for folks whose immune system is compromised, such as cancer and AIDS patients. After acquiring the rights, the C.E.O raised the price of the drug from $13.50 to $750 per tablet. Without hesitation, the specialists of infectious disease protested over such a dramatic overnight increase in price, arguing that this was not a new drug and has been available for the last 62 years. What is the reason for the rocket shooting price?

Frequently, drug prices increase due to shortages, but price increase because of company strategy is not an uncommon strategy. The C.E.O of the company Martin Shkreli in an interview defended the organization’s action by saying that he was trying to create a successful drug company, which is significant, profitable, and flourishing. From the incident, we can see that most drug companies focus on profits rather than a person’s health.

Step 2

As compared to other nations, the United States experiences high prices on drugs; for instance, there is a particular drug injection used for curing ordinary conditions such as psoriasis and arthritis known as Humira. It is amongst the popular drugs currently, in 2015, patients all over the globe spent roughly $14 billion on Humira prescriptions, that’s approximately the size of the entire economy of Jamaica. Humira is a similar product, whether sold in other states or the United States, but people were asking why is it that it is different in the U.S is? This occurs in the United States due to the systems of regulation they have set up in pharmaceutical industries. It is unique in the United States because it does not bother to negotiate or regulate the costs of new drugs when they enter the market.  Another factor contributing to the high prices of medicines in the United States is that the U.S tolerates drug makers to come up or set their rates for a particular product and also consent to any medication that is declared to be safe get into the market. And the difficulties are easily seen, from high cost from drugstores to individuals who cannot afford the drugs to save their lives. Another major factor is the argument based on the high prices of medicines in the United States is that if the drug prices were to be lowered, then it would be making a trade-off. Reducing profits would constitute pharmaceuticals an attractive field for investors. And minimum investment in the industry of drugs would mean minimum research towards innovative and new cures. On the other hand, for the United States to lower the prices of medicines, it should formulate agencies and policies that regulate the costs of new medicines that are joining the market or being purchased by specific companies to be taken to the market at high prices. The same agencies and policies should not allow the drug makers to set their prices; instead, they should set prices that are affordable even to the average man.

Step 3

Other countries such as Australia assign a government agency to meet with pharmaceuticals organizations and discuss a suitable price that favors every citizen. These agencies will classically formulate decisions about whether the new upcoming drugs contain any improvements over the existing drugs – whether they deserve to be brought to the market first of all. They will conduct thorough research on the drug’s benefits and demerits. Besides, several countries, such as Britain and Canada, regulate the drug price over another thing such as computers and televisions (Humphries, B., & Xie, F. (2019). They treat medication as a priority because it is vital, and some citizens cannot live without it. These countries also use these agencies to have negotiations with drug makers as leverage; they end up saying no to the new drugs that they think they are up to snuff. Therefore, several medications in the United States market are not available in other nations. Other country’s agencies of regulation decline drugs when they think that the drug provides less benefit to explain the costs drug makers want to pose on the drug. Unlike the U.S, every new drug gets into the market without restriction, and drug makers decide on what to charge.

Step 4

The United States should consider suitable alternatives to curb the cost of drugs that is hiking. Several favorable choices include; policymakers could permit the generic drug importation from other countries, specifically on the onset of drug shortages in the state (Dusetzina, S. B., Huskamp, H. A., & Keating, N. L. (2019). The Food and Drug Administration should approve generic drug processing and other potential substitutes that will compete with existing therapies. Pharmacist or researchers could have broad aptitude to substitute offered medications with less expensive prescription drugs that are chemically identical and effective. Agencies of the government could make much information present about the value of the drug to encourage physicians and patients to make decisions over medicines that offer the most clinical benefit for the money. Formulate government agencies that will regulate and control the prices for upcoming medicines when joining the market. And the same agency should not tolerate drug makers to set prices for the medicines; instead, they negotiate at a favorable price.

Step 5

The most favorable and best alternative among the ones listed above to lower the price of drugs in the United States is, forming government agencies to regulate the flow of new medicines in the market and assessing the merits and demerits of the same drug. The agency should also negotiate with the drug makers to come up with the best and affordable price to all citizens, including the mediocre ones. The government should also permit the importation of the same drugs from other countries and sell at an affordable price. The government should do a thorough investigation of the imported drugs to ensure that they meet all requirements to be consumed by people.

Step 6

Several countries, such as Canada and Australia, have applied the above recommendations, and they have resulted in positive outcomes. These countries have tasked a government agency to negotiate with pharmaceutical organizations about affordable prices and contribute to setting the drug prices together with the drug makers. Additionally, these countries’ government agencies have denied several drugs into joining the market, especially when they think that the drug has no improvements over the existing one.

Conclusion

As we focus on epidemics all over the globe, we should take a high price of drugs as an epidemic in the United States. Immediate actions should be taken without hesitation for the condition is increasing and poses much and many difficulties to the average citizens living in the United States. The government should also apply the recommendations mentioned above to try and curb the epidemic of high prices on drugs in the U.S.  The government of the United States should put the lives of people as a priority by focusing and putting more attention on this matter of high prices on prescription drugs.

 

 

 

 

 

References

Humphries, B., & Xie, F. (2019). Canada’s amendment to patented drug price regulation: a prescription for global drug cost control?. Jama, 321(16), 1565-1566.

Dusetzina, S. B., Huskamp, H. A., & Keating, N. L. (2019). Specialty drug pricing and out-of-pocket spending on orally administered anticancer drugs in Medicare Part D, 2010 to 2019. Jama, 321(20), 2025-2027.