Skip to main content

The Complex Factors that Influence Drug Prices

Pharmaceutical companies typically use a variety of factors to determine the price of their drugs, including: Development and production costs: Pharmaceutical companies invest significant amounts of money into the research, development, and production of new drugs. The cost of these activities, including clinical trials and obtaining regulatory approval, is factored into the price of the drug. Marketing and Distribution Cost: Marketing and distribution costs may also be considered by pharmaceutical companies when determining drug prices. These costs include expenses related to advertising, sales representatives, and distribution networks. Drug Uniqueness: If a drug is the first of its kind or represents a significant improvement over existing treatments, the pharmaceutical company may set a higher price for it. If a drug has many competitors or is like existing treatments, the company may have to set a lower price to remain competitive. Market demand: Companies also consider the dem

Generic Drugs Marketing

Generic Drugs are the drugs which are sold with only international non proprietary name (INN) or common name. When a pharmaceutical company develop a new molecule, pharmaceutical company is granted by exclusive right of that molecule for certain period of time known as patent. After expiry of that patent, other pharmaceutical manufacturers are also allowed to manufacture that molecule. Products other than innovator’s brand are known as Generic Drugs.

Marketing of generic medicines vary market to market. In USA, only one brand name product is allowed for any molecule, other products of that molecule can only be sold with its international non proprietary name (INN) or common name or generic name. But in India, a molecule could have number of brand names and every manufacturer can sell their products by fixing a brand name. These generic medicines with brand name are also known as Branded Generics.

Marketing and promotion of generally same in all regulated markets but vary in unregulated markets. In regulated markets where sale of drugs without registered medical practitioner’s prescription is not allowed, Medical practitioners play an important role while preparing a marketing strategy for your generic medicine manufacturing company.

Hospital pharmacies are main source for sale of generic medicines in regulated market. General pharmacy stores also contribute to sell of generic medicines but not at such extent. Tie-up or contract with doctors/hospital is one of the good ways to boost generic medicine sale. A distribution channel is required to make availability of generic medicines at hospital pharmacies and chemist shop and convince medical practitioners to prescribe your products at prescription.

In unregulated market, drugs are also sold out without prescription of medical practitioner. In these markets difference between generic medicines and branded medicines are created on the basis of whether it is prescribed by RMP or not. If it is prescribed by RMP then it is branded medicine otherwise it is generic medicine if it is dispensed by pharmacy or chemists without prescription of RMP.

In unregulated market, hospitals/doctors are not the key players. Key players are pharmacy and chemist shops which are responsible for sale of medicine. It creates huge price competition among companies or distributors but this price competition is not beneficial for patients, only limited to pharmacy and chemists.

Hope above information is helpful to you...
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

Comments

Send Distribution/Franchise Query

Name

Email *

Message *

Register your business at

Find pharmaceutical, cosmetics, nutraceutical, ayurveda and alternative medicine's distributors, franchise, suppliers query for free.

If you want to take distribution, franchise or associates with any pharmaceutical, cosmetic or ayush company then you can find it here...

Popular posts from this blog

What are the Schedules under Drug and Cosmetic Act, 1940 & Rules 1945?

Schedules are the set of provisions for classifications of drugs, forms, fees, standards, requirements and regulations related to pharmaceutical, Ayurvedic (including siddha), unani and tibb system of medicines, homeopathy, blood and realted products etc under Drug and Cosmetic Act, 1940 and Rules, 1945. The schedule to the drugs and cosmetics act are Schedule A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y. Drug and cosmetic rules are divided into schedules alphabetically and named also alphabetically like Schedule A, Schedule B etc till Schedule Y. The schedules to the drugs and cosmetics act are important part. Every schedule contains specific information as discussed below. Schedule A:  Schedule A  describes application forms and licenses types. Download Schedule A Pdf Schedule B:  Schedule B  describes Fees for test or analysis by the Central Drugs Laboratories or State Drugs Laboratories. Download Schedule B Pdf Schedule B1: Schedule B1 describes

State Pharmacy Council, Its Constitution and Composition and Functions

State Pharmacy Council: State Pharmacy Council is constituted as per the Pharmacy Act, 1948 & State Pharmacy Rules, 1951. State Pharmacy Council is an authoritative council to regulate Pharmacy Act, 1948 & State Pharmacy Rules, 1951. What is state pharmacy council? State Pharmacy Council means a State Council of Pharmacy constituted under section 19, and includes a Joint State Council of Pharmacy constituted in accordance with an agreement under section 20 under the Pharmacy Act, 1948 & State Pharmacy Rules, 1951. State Pharmacy Council constituted and work under  Pharmacy council of India . Composition of State Pharmacy Council: The State Pharmacy Council consists of the following: i) Six members, elected from amongst themselves by registered pharmacists of the State; ii) Five members, of whom at least three shall be persons possessing a prescribed degree or diploma in pharmacy or pharmaceutical chemistry or registered pharmacists nominated by the State Governme

How to Register as a Pharmacist in India?

Who is a Pharmacist: Pharmacist is a person having educational qualification in pharmacy profession i.e. Diploma in Pharmacy or Bachelor in pharmacy or Pharma D etc. Who is a Registered Pharmacist: Registered Pharmacist is a person having educational qualification in pharmacy and his/her name is registered under state pharmacy council  of state in which person reside or want to conduct his/her profession or business . How to become a Registered Pharmacist? For becoming pharmacist in India, a person has to fulfill criteria as per Pharmacy Act. A person want to register himself/herself as a pharmacist should have at least minimum of Diploma in Pharmacy or Bachelor in Pharmacy or Pharma D. After completing above mentioned qualifications, you become eligible for registering as a pharmacist. If you have only Diploma in pharmacy, then 500 hours practical training spread over a period of not less than 3 months is also required to become eligible. download pdf After registering your name in s