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Decrease in the Price of Medications Noted Worldwide

Posted by on Thursday, January 28, 2010, 6:14
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Decrease in the Price of Medications Noted Worldwide

 

A decrease in the price of medications is being noted worldwide. Previously before 5 years, there used to be only an increase in the price of medicines, but after that, as the recession started to begin the decrease in the medication prices started. Recession has made every business suffer the loss. Along with the recession, the generic drug’s entry into the market and the kind of response they received have affected the drug market a lot. To cope with the competition from these low-cost drugs even the branded drug manufacturers needed to cut down the prices. This is what revolutionized the entire pharmacy market, thus leading to a reduction in the prices of medicines. In the last financial year about an 11% decrease in the prices of the medication is being noted.

In the US market, the condition is getting worse as it is the country that is most affected by the recession. The pharmacy market has suffered a lot in the last 5 years, many jobs have been cut and financial crises are being felt everywhere. Some people have committed suicide due to the financial crises. The US pharmacy market is being mainly affected due to the outburst of online pharmacies from other countries. The US people are not purchasing medicines from any shops as they get branded drugs that are very expensive and are not affordable to them. So, they purchase from the online pharmacy. They get the medicines at very reasonable rates on internet drug stores which adversely affects the US pharmacy market because online pharmacies are basically from other countries than the US.

In European nations also the same condition as that of the US market is being noted and people are turning towards the pharmacy market. European nationals were not before so attracted to generic drugs, but during the last 5 years due to the recession they were not able to go for the branded drugs and certainly, they went for low-cost drugs. This affected the sale of the branded drugs. The branded drug manufacturer has to reduce the prices to cope with the generic drug prices. A decrease in the price of medication is being noted every year in the European nations.

The decrease in the price of medication is also the result of the too-expensive pricing of generic drugs previously. Branded drug manufacturers are the reason for the loss being observed in the pharmaceutical industry. It was the high prices of the branded drugs that made customers search for other options of medicines that are available for reasonable rates. When there is a demand business man tries to satisfy it. So, the generic drug manufacturer used this opportunity to reach the maximum number of customers.

In the last 5 years, about 27% of the decrease has been noted in the prices of medicines. This is up course beneficial for the customers. Even generic drug manufacturers are earning better profits. The only problem is with the branded drug manufacturers who are suffering heavy losses. This way recession is at least beneficial to the customers in one or the other way. However, as per the market survey, the recession is going to collide in a few months, but the prices of the medication will take some time to increase. This is again going to benefit the customer. Even the online pharmacy prices will get slashed in a few days due to the taxes cut on the medicines. So, this way the decrease in the price of mediation is noted worldwide.