John R. Hoffman is a Professor of Biology, public speaker and a scientist examining the recovery of the nervous system after injury. Since 2006 he has written several unpublished manuscripts and he is currently working on the first Nathaniel Smythe novel and short story collection. He spends his spare time with his family and running.

20 Costs of prescription drugs

Objectives

By the end of this lecture, the student will be able to:

  1. Describe the economics associated with the development and sale of a new prescription drug.
  2. Explain how and why there are differences in drug costs in different regions of the world.

Ethical Issues around the costs of prescription drugs

This mini-lecture examines laws and other factors affecting the cost of prescription medications. The handout for this presentation can be downloaded and printed.

Readings:

Follow the pill: Understanding the U.S. Commercial Pharmaceutical Supply Chain. Henry J. Kaiser Family Foundation.

Obama Tries to Speed Response to Shortages in Vital Medicines. Harris, G. (10/31/11). New York Times.

Supply of a Cancer Drug May Run Out Within Weeks. Harris, G. (02/11/12) New York Times.

Assignment: Drug Costs
Watch the ABC news video. Vital Cancer Drug Shortage. In your discussion group, consider the fact that pharmaceutical companies have to balance the goals of producing safe and effective medications while continuing to stay in business by generating a profit.  However, the costs of certain vital medications may limit their availability to low-income patients, production rates limit the supply of medication in circulation, and other medications may not be readily available across the globe. At a time when illegal drugs can be obtained relatively easily, what can be done to ensure ready access to needed medications?

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