Native American Pharma Saving Americans Billions
In the United States, government has attempted to encourage innovation in pharmaceutical development to yield a constant flow of new medicines to the marketplace. The US government gave the pharmaceutical industry various incentives to include setting their own pricing to help the consumer access to new drugs at a price they can afford. In addition, the United States relies on a strong generic pharmaceutical industry to create added competitive pressure to lower drug prices. Recent action by the Administration and Congress, such as the Hatch-Waxman Act of 1984, has accelerated the process of approval for generic drugs, bioequivalence issues including “switchability”, bioequivalence for complicated dosage forms, patent extension, generic drug safety, generic substitution and low-cost generics. However, the issue still remains that within a free market, pharmaceutical giants have made it a practice in paying millions of dollars in incentives to entice dollars and hospital groups to subscribe what is in the best interest of pharma’s bottom line, not necessarily that of the patient.
According to Evaluate Pharma, of the top selling drugs in the United States:
- The median revenue per patient of the Top 100 drugs has increased from $1,260 in 2010 to $9,400 in 2014, representing an seven-fold increase;
- The median patient population size served by a Top 100 drug in 2014 is 146,000, down from 690,000 in 2010;
- and There are now seven treatments priced in excess of $100,000 per patient per year in 2014, versus four in 2010.
In contrast, in the Organization for Economic Cooperation and Development (OECD) countries in which by government ordered price fixing rather than competition to set prices. The result is a much more affordable pharmaceutical pricing consumer pricing 25-70%, while preserving significant revenue margins by purchasing pharmaceuticals from FDA approved international facilities and importing through Native American Free Trade Zones.