U.S. governments generic drugs policy Essay Example | Topics and Well Written Essays - 1000 words

U.S. governments generic drugs policy - Essay Example This study is concerned with prevention of erosion of the viability of Pharmaceutical Companies and ways in which these companies will re-invent themselves to stand out against the crisis in addition to what economic forces will influence their ultimate survival.This proposal seeks to study the impact of price control on generics medicines on the pharmaceutical companies of the U.S. and how they should face the challenges to survive the impact. This proposal sets the outline for studying the impact of the U.S. Government's generic drugs policy, how it affects the pharmaceutical industry and how the companies should address the situation in order to stay competitive and continue to meet the dynamic and ever growing health care needs. The situation is alarming as many drugs will go off-patent with the result, the pioneering pharmaceutical companies will be pitted against the rest of the world in surviving the competition from generic drugs market unless they continue to innovate and in vent newer drugs for existing and new diseases. This study will identify the interplay of economic theories that underpin the survival of pharmaceutical industry in the wake of increased competition in generics market.World pharmaceutical sales are estimated to grow by 5 -6 % in 2008 as opposed to 6 -7 % growth in 2007... d in the increase of use of low cost generics, accelerated payer pressure, limited access to some therapies and increased safety measures that lead to the slowing down and stopping of introduction of new drugs. On the other hand, the emerging markets called "pharmerging" markets of China, India, Brazil, Mexico, South Korea, Turkey and Russia are expected to register an increase of 12-13% in consumption of drugs due to greater access to generic drugs, improvement in primary care and increased interest to take private health insurance. In the U.S, there will be soon the end of Medicare Part D rhetoric as a result of pressures on price increase, patent expiries and increased safety measures taken by the FDA. The forecast says that the shift will be in terms of absolute growth in cancer drugs, anti-diabetic drugs, angiotensin II antagonists, respiratory drugs and psychiatric drugs. In Diabetics treatment alone 9%-10% growth is expected (IMS Health Incorporated 2008) Pharmaceutical companies are watched out to check on profit generation. The UK government, for instance, under its PPRS allows the companies to set their prices but keep their earned profit margins within the agreed upon limit. Any extra profit should be submitted to the NHS. OFT has recommended that the Pharmaceutical Price Regulation Scheme (PPRS) should be reformed, so that they can use money from NHS to manufacture drugs with the greatest benefits for patients. (Office of Fair Trade: Pharmaceutical Price Regulation Scheme). Though the WTO's newly adopted measures seek to give greater guarantee to the R & D efforts of pharmaceutical companies to the developed countries, it will not give any corresponding benefits to original inventor pharmaceutical companies in the U.S. and other developed countries due