Why are US drug prices high?

Today President Trump tweeted on the drug prices. We have researched on three common questions on drug pricing.

Q1. How much does American people spend prescription drug per year compare to other countries?
Q2. Drug price difference among countries.
Q3. Why are US prescription drugs so high?

Answer 1:

  • US         $1162
  • Canada   $838
  • Japan      $803
  • Germany $766
  • France     $668
  • Italy          $605
  • Sweden    $519

(source: statista 2017)

Answer 2:

Crestor (Cholesterol-lowering pill)

  • US           $86.4 (w/discount)
  • Germany $40.5
  • Canada   $32.1
  • Japan      $28.8
  • France     $19.8

Januvia (Diabetes pill)

  • US           $168.61 (w/discount)
  • Germany   $39.0
  • Canada     $68.1
  • Japan        $47.4
  • France       $35.4

Herceptin (Breast cancer infusion)

  • US            $4754 (w/discount)
  • Germany  $3186
  • Japan       $1731
  • France      $2528

(source Bloomberg 2015)

Answer 3:

  • Drug manufacturers in the U.S. set their own prices. The U.S. government doesn’t negotiate prices with pharmaceutical manufacturers like other countries do.
  • Less governmental regulation on drug prices.
  • Pharmaceutical companies not only set the prices for new drugs when they hit the market, they increase the prices of existing drugs as well.

 

Trump Tracker: https://hcw68.app.goo.gl/p6u5