The price of some drugs are too LOW Some drugs are priced too LOW. Phenobarbitol, for example, is the least expensive Rx drug. Used primarily for treating epilepsy, a 90 day supply of phenobarb might cost about $15.00. This low price is NOT a good thing.
If you make this drug, you cannot make much profit on each tablet. Suppose you had the option of making a drug that makes 1/10 cent per tablet, or, by using the same factory, making a drug with profit of 40 cents tablet. Why bother making less money? No law say that a drug maker must make the drug phenobarbitol. No more phenobarbitol will be made. Many drugs have been discontinued because making a different drug is more profitable. When the profit margins on more expensive drugs increase, they tend to increase the price of the older, less expensive drugs.
A drug must either justify itself or it will no longer be made. |