Why are drugs priced so high?

One is the production cost of drugs. The research and development, production and marketing of medicines cost huge sums of money. Drug R&D requires a lot of laboratory research and clinical trials, all of which cost a lot of manpower, material and financial resources. At the same time, the production of pharmaceuticals requires the use of high-end equipment and technology, which are also very expensive to invest in. In addition, the production process of pharmaceuticals requires compliance with various laws, regulations and quality standards, which also increases production costs.

The second is the high operating costs of medical organizations

. The operating costs of medical institutions are also one of the reasons for high drug prices. Medical institutions need to pay staff salaries, medical equipment and medical supplies procurement costs, rent, utilities and other various costs, which is passed on to the price of drugs. These costs are especially high for large general hospitals. In addition, medical institutions also need to invest huge sums of money for health epidemics, medical quality control, which is also part of the operating costs of medical institutions.

Third is the cost of drug circulation

Drugs in the circulation process, but also need to go through various links of intermediaries, such as wholesalers, retailers, agents, etc., each link needs to extract a portion of the profits, and ultimately make the price of drugs remain high.

Fourth, the drug pricing system.

In the domestic drug pricing by the state for uniform regulations, drug prices are 0 difference, but the drug pricing system has deficiencies. First of all, the price adjustment is slow, it often takes several years or even longer to make an adjustment, resulting in price lag. Second, due to the high cost of research and development and production of drugs, while the price of drugs is limited by national policies, which also makes it difficult to make a profit, resulting in a lack of market supply of some drugs.