The pharmaceutical industry is a complex and intriguing world. It’s also one of the most important industries in the world. You may think you know all there is to know about pharmaceuticals, but we’re here to tell you that there are quite a few things you probably didn’t know about this field.
In this article, we’ll explore four pharmaceutical industry aspects that might surprise you.
- Drug Prices Are Not Set in a Free Market
Most people are probably familiar with the phrase “free market.” For example, when you’re driving down the highway and see a sign that says “Free Truckers,” you know what they’re advertising. “Free” in this case is not referring to cars. It’s referring to truckers, which is the reason most people think driving trucks for a living is actually free. If it were free, why would these companies offer discounts or bonuses?
But if you think about it, drug pricing has little to do with free markets. In fact, drug pricing actually involves some pretty shady business practices that require a lot of government intervention. It’s also usually done through negotiation with pharmaceutical companies by the government or other health care groups. That goes against many people’s beliefs about how drugs should be priced.
- It is Among the Most Profitable Industries in the World
The pharmaceutical industry is what many people think of when they think of capitalism. That’s because it’s not just about making money for a corporation or a business. They’re also about trying to cure diseases and save lives by offering medicine that helps people, which is an altruistic purpose that businesses should want to follow.
But the pharmaceutical industry actually makes a lot of money from things other than curing diseases and saving lives. It makes so much money that it ranks as one of the most profitable industries in the world, earning more than twice as much per euro than other industries such as energy, engineering, or manufacturing.
- The Industry Spends Billions on Advertisements
The pharmaceutical industry is a multi-billion-dollar industry that spends billions on advertisements. It is not just about pushing the latest and greatest products. Most of them spend a good chunk of money to promote awareness of diseases and conditions that could be treated by their products. For example, a company such as PHC prides in letting the general masses know about their pharmaceutical cold stores and accessories.
According to recent research, the pharmaceutical industry spends more than $5 billion annually on advertisements alone. This doesn’t include marketing expenses for other mediums like direct mailers, which can cost as much as $50 million yearly for some companies.
- The Industry Gets Fined Pretty Often
The pharmaceutical industry has gotten in trouble a lot. There have been hundreds of instances where the government has fined them and even prosecuted them for charges related to their products and the pricing of their drugs. For violating these pharma regulations, they are fined millions every year. You won’t find one pharmaceutical company without such a record.
Conclusion
With the pharmaceutical industry being one of the world’s most lucrative and competitive industries, it’s easy to see why people think they know it inside and out.
But there are a few things about this industry that you probably didn’t know; we have broken down a few in the above article.