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Questions and Answers
What is one reason pharmaceutical companies increase drug prices?
What is one reason pharmaceutical companies increase drug prices?
Why might a company increase drug prices before a patent expires?
Why might a company increase drug prices before a patent expires?
What is a perceived consequence of increasing drug prices before patent expiration?
What is a perceived consequence of increasing drug prices before patent expiration?
What allows pharmaceutical companies to monopolize drug pricing for a certain period?
What allows pharmaceutical companies to monopolize drug pricing for a certain period?
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What factor might lead to increased drug prices related to supply chain issues?
What factor might lead to increased drug prices related to supply chain issues?
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What was the price increase of Daraprim after its acquisition by Turing Pharmaceuticals?
What was the price increase of Daraprim after its acquisition by Turing Pharmaceuticals?
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What might be an unintended market reaction to pharmaceutical companies raising drug prices?
What might be an unintended market reaction to pharmaceutical companies raising drug prices?
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Which argument is presented by Turing Pharmaceuticals for raising the drug's price?
Which argument is presented by Turing Pharmaceuticals for raising the drug's price?
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What was a key public reaction to the price hike of Daraprim?
What was a key public reaction to the price hike of Daraprim?
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What does the term 'toxoplasmosis' refer to?
What does the term 'toxoplasmosis' refer to?
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What is a significant concern associated with rising drug costs for patients?
What is a significant concern associated with rising drug costs for patients?
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In the context of drug cost increases, what does the concept of 'pharmaceutical inflation' primarily refer to?
In the context of drug cost increases, what does the concept of 'pharmaceutical inflation' primarily refer to?
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What is a potential benefit that pharmaceutical companies claim results from higher drug prices?
What is a potential benefit that pharmaceutical companies claim results from higher drug prices?
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Study Notes
Intellectual Property and Drug Pricing
- Pharmaceutical companies, due to exclusive rights granted by intellectual property, can set drug prices without competitive pressure from generic versions.
- This leads to significant price increases, a major concern in healthcare.
Example of Price Hike: Daraprim
- Turing Pharmaceuticals, under CEO Martin Shkreli, dramatically increased the price of Daraprim (used for toxoplasmosis) from 13.50to13.50 to 13.50to750 per pill.
- This caused public outrage, highlighting the issue of pharmaceutical pricing.
- The company claimed the high price was needed for research, but others argued it limited access to a vital medicine for profit.
Reasons for Drug Price Increases
- Fiduciary responsibility to shareholders: Companies may raise prices to improve stock performance.
- Patent expiration: Companies anticipating generic competition price drugs before patents expire.
- Supply chain issues: Shortages and increased supply chain costs can raise drug prices.
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Description
This quiz explores the impact of intellectual property on drug pricing in the pharmaceutical industry. It examines case studies like the price hike of Daraprim and discusses the underlying causes of rising drug prices. Understand the balance between profitability and public access to essential medications.
