The Business Aspect Of The Pharmaceutical Industry

Government Collaboration:

In the scholarly book, “TRIPS, Pharmaceutical Patents and Access to Essential Medicines: Seattle, Doha and Beyond”, Hoen describes the need and uses of patents in the pharmaceutical industry. The World Trade Organization and Trade-Related Aspects of Intellectual Property Rights Agreement help facilitate the ever growing industry. In order to protect intellectual property, these organizations set out patents to these companies. The article states that there are many drawbacks such as how patents increase the price of these drugs and limiting its consumers ability to acquire them. The source is outdated, as it was published in 2006, but it was helpful in understanding the way patents are incorporated in this industry. The insight from the pharmaceutical patents book allowed me to understanding the next book about the business aspect of the pharmaceutical industry. In the book, “Pricing, Profits, and Technological Progress in the Pharmaceutical Industry”, Scherer discusses the business of pharmaceuticals in the United States. The necessity of medicines throughout the world is a driving force of this sustaining industry. The U.S. health care costs in 2013 was 17.1% of the gross domestic product. The significance of this is that it is the second highest only to Tuvalu, which only has a population of 9,876. This high cost of pharmaceuticals leaves the people of the United States with an economic burden. Although being a country that is a world leader, the U.S. continues to struggle in the ability to provide sufficient medication to everyone in need of them. In the book, “International Pharmaceuticals,” Gary Banks delves into the factors of the international pharmaceutical industry. He discusses the roles of g...

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...needs, pharmaceutical purchasing must be able to contribute to the efficiency and equity objectives of health sector reform. Social responsibility is a key term to consider whenever discussing any business. The pharmaceutical companies themselves are only focused on creating the highest amount of profit and sometimes that conflicts with the purpose of the product itself. Without the pills the patients are unable to obtain the treatment necessary to overcome the medical issue at hand. Pharmaceutical companies and government organizations will have to realize the immense problem that the general public faces due the people’s inability to acquire these drugs.

Research Question: How does the manipulation of intellectual protection and the consequences of monopolistic companies affect pricing of pharmaceutical drugs in the United States compared to the rest of the world?