The drugs industry thrives on novelty. Claims for the great new wonder drug fuel shareholder interest, which in turn pushes up the share price. Better yet, doctors are keen to try out the new drug on the patient, which goes straight to the drug company’s bottom line. It’s been reckoned that new drugs are responsible for a third of drug company profits every year.
So it’s not surprising to hear that a new study has discovered that American doctors could reduce the nation’s annual healthcare budget by an enormous $9bn just by prescribing generic drugs instead of the identical ‘brand’ variety.
The branded product is the one that gets the interest. It’s advertised as the great new thing, while the copycat version instead sneaks in through the back door.
Such an unfashionable switch would reduce drug expenditure in the USA by 11 per cent, which is why it’ll never happen.
* If you want the low-down on the drugs industry and its many, and delightful, ways it makes a buck, you’ll want to read Secrets of the Drugs Industry. It’s an eye-opener for anyone who cares about the world in which they live. Order your copy by clicking this link: http://www.wddty.co.uk/shop/details.asp?product=341