How are drug prices determined?

While there is a 0% price differential for hospital drugs, the level of drug prices is not entirely determined by this. Drug prices are also affected by a variety of factors, such as research and development costs, production costs, publicity costs, sales profits, taxes, and so on. In addition, the prices of drugs of different brands, specifications and batches also vary greatly, so the prices of different drugs may also be different. At the same time, hospitals also need to bear a variety of costs and expenses such as operating costs, equipment costs, personnel costs, etc. These costs will also affect the price of drugs in hospitals. So even if there is 0 price difference for drugs, hospitals need to price according to the actual cost to ensure normal operation and service quality. The following are some of the factors affecting drug prices:

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R&D Costs: Pharmaceutical companies need to invest a large amount of R&D costs in developing new drugs, including researchers, laboratory equipment, materials for testing, etc. These costs will be apportioned to the price of the drug.

Production costs: the production of drugs need to use a variety of materials and equipment, the manufacturing process requires a lot of investment in manpower, material and financial resources, while there will be a certain amount of loss and waste in the production process, these costs will also be reflected in the price of drugs.

Publicity costs: pharmaceutical companies need to advertise to doctors, patients and other target groups to increase awareness and sales of drugs. Advertising costs a lot of money and this is also factored into the price of the drug.

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Sales Profit: In the process of distribution and sales of drugs, each link will generate a certain amount of profit, such as wholesalers, retailers, distributors and so on. These profits are also factored into the price of the drug.

Taxes: The government levies certain taxes on medicines, such as value-added tax and sales tax. These taxes are also factored into the price of the drug.

In addition, the price of medicines will also be affected by factors such as brand, specification, batch, etc. The price of medicines of different brands, different specifications and different batches will also have a big difference.

For hospitals, operating costs are also one of the factors affecting drug prices. Hospitals need to bear the cost of equipment, personnel costs, rent and other costs and expenses, which will also affect the price of drugs in the hospital. So even if there is 0 price difference for drugs, hospitals need to price according to the actual cost to ensure normal operation and service quality.

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On the issue of the video posted by Wang Quanyou, who played the role of Captain Ding in "The Bright Sword," claiming that the cost of purchasing cold medicines is too high, I have the following points to make:

First of all, the issue of drug prices is indeed a matter of widespread concern. The price of medicines is not just a matter of whether individuals can afford to buy them, but also involves the public's health and well-being and the rational use of medical resources. Therefore, it is necessary to regulate and control the prices of medicines to ensure the public's rights and interests and the rational allocation of medical resources.

Secondly, we need to recognize that the price of cold medicines is determined by a variety of factors, such as production costs, sales costs, research and development costs and so on. Especially for prescription drugs, the price is also subject to the approval and regulation of the relevant government departments.

Finally, we should adopt a scientific and reasonable attitude towards the issue of drug prices. When purchasing medicines, we need to choose according to our own actual situation and the doctor's advice, instead of blindly pursuing inexpensive medicines. At the same time, there is also a need to promote the transparency and fairness of drug prices with the ****same efforts of the government and society to protect the legitimate rights and interests of the public.