Are Prescription Drug Prices High?

Abstract

The U.S. pharmaceutical industry has been criticized because its products are perceived to be too expensive, yet prescription medicines remain the least expensive form of therapy. At this time, we are experiencing a dramatic increase in the risks and costs of pharmaceutical research and development (R&D). An example may be seen in the R&D history of lovastatin. The U.S. pharmaceutical industry continues to lead the world in the discovery and development of important new medicines because it assumes greater financial risk and invests more of its sales dollar in R&D than virtually any other industry. Where such a risk is posed, there must continue to be the potential for profits. Pharmaceutical companies must set responsible prices, must keep price increases down, and must help improve access to important medicines.