It is important that the pharmaceutical industry selected does extensive research in order to produce pharmaceuticals and other medicines that can be used for improving health. Conspicuously, pharmaceutical companies have been accused of charging too much for medications that make them expensive and unaffordable for most customers. (Conti, 2020). Patients with chronic diseases suffer greatly and are more likely to become poor due to high prescription costs.
To defend the pharmaceutical industry, premium pricing is reasonable to allow them to profit from research and development. It is a significant investment for the pharmaceutical industry to create new medicines. According to Conti and colleagues, 2020, $83 billion was spent by pharmaceutical companies on research in order to develop new medications and vaccines. To achieve profitability, the firms need to demand high prices. The industry would be unable to make larger profit margins if it had lower pricing.
The second is that premium pricing attracts more investors than investing in other industries. Pharmaceutical industry is commercially driven. High earnings enable institutions to do extensive research, hire qualified biomechanical engineers and researchers, and produce medications for difficult ailments and conditions (Will & Emery, 2022). An institution’s financial viability is threatened by a decrease in its pricing. The sector is capital-intensive, and requires large resources. Therefore, it’s important to regulate pricing so that investors are discouraged from investing.
Third, premium rates should be charged by the corporation to fund the creation of new medications to offer customers a wide range of choices. Due to high prices, the university is able to continue researching and finding more effective treatments for specific ailments. Due to disease mutation, constraint medication innovation is essential for controlling mutants (Will & Emery, 2022). Low prices can make it harder for pharmaceutical firms to do routine research and create new medications.
Corporations can serve their own interests as well as those of customers. Pharmaceutical businesses might conduct market research in order to establish the best price for their products. An institution could create a pricing plan that is based on current market conditions to increase access and generate sustainable profits. In order to make them more accessible, the corporation could work with the government (Kesselheim, et al. 2016). Subsidies can increase the financial viability of corporations and allow more people to access the medication. To limit customers’ access to unneeded generics pharmaceuticals, only high quality items should be manufactured by pharmaceutical companies. Sometimes, generic drugs are produced by multiple corporations. Ineffective drugs can cost consumers hundreds of dollars. The pharmaceutical industry might offer customers a limited number of drugs that are effective, rather than making them expensive and ineffective.