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
As per https://www.statista.com/
Pharmaceutical market is about 1.42 trillion U.S. dollars
The global pharmaceutical market has experienced significant growth in recent years. As of end-2021, the total global pharmaceutical market was valued at about 1.42 trillion U.S. dollars.
With an average spend of 1,229 U.S. dollars per person, the United States had the highest pharmaceutical spending per capita worldwide in 2019.
Globally, the United States has emerged as the leading market for pharmaceuticals, followed by the group of emerging markets. Emerging markets can include middle and low-income countries such as Brazil, India, Russia, Colombia and Egypt, to name a few.
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