Do you know why prescription drugs cost so much? No, forget about development costs. Just turn on your television and look at all the glossy commercials requesting that you ask your doctor about their pricey pharmaceuticals. You’ll see a whole lot of healthy looking older couples doing fun things together while a voice in the background warns that if you take Abflubimabad (I invented this drug name, so don’t try to buy it or even ask your doctor about it), you may suffer from St. Vitus Dance, rickets, premature ejaculation, memory loss, Ebola, a moist handshake, heart failure, or death. But you’re not listening to this voice droning on, and those old couples look so happy.
Wait until you find out how much Abflubimabad costs: Just finding out may cause St. Vitus Dance, rickets, premature ejaculation, memory loss, Ebola, a moist handshake, heart failure, or death. It costs a whole lot of cash to place ads on prime time TV, especially the cable channels that old people like to watch for their retro programming.
For one thing, the U.S. is only one of two countries that allow this type of advertising. (The other is New Zealand.) Could this be why American drugs are so much more expensive than Canadian or Mexican equivalents?
Whereas the market for TV advertising in general has been flat for the last few years, the direct-to-consumer drug ads have grown 62% since 2012. The pharmaceutical industry is one of those industries where marketers could call a meeting at the beginning of year and pretty much decide what their profit is going to be. (The insurance industry is in the same category.) So it doesn’t matter what these drugs cost. They want to create a buzz, so that viewers will directly participate in their doctors’ decisions, which, of course, they are clearly not qualified to do. Then Big Pharma just raises the prices by astronomical amounts.
Guess who pays for it in the end.