Study claims market exclusivity and patenting increases drug prices

Drug prices are increasing significantly in the US due to government regulations, including surrounding patents and market exclusivity, according to a new  study.

Released yesterday, August 23, the study reported that in 2013, per capita spending on prescription drugs was $858, compared with an average of $400 for 19 other industrialised nations.

The study, by Harvard University study and published in the Journal of the American Medical Association, further identified that in the US, prescription medications now comprise an estimated 17% of overall personal health care services.

It was suggested that market exclusivity granted by the Food and Drug Administration as well as patenting were the reason that drug companies are able to set high prices.

These two factors tend to cause a delay in generic versions of a drug being marketed.

The study suggested that one way to solve the monopoly would be to enforce stricter requirements for exclusivity rights, and enhance competition by ensuring timely generic drug availability.

As reported by  Healthday, this week, Mylan Pharmaceuticals has been under the microscope for increasing the cost of EpiPen (epinephrine injection) from around $57 in 2007 to more than $500 today.