The Pharmaceutical Industry. Professor Vivian Ho Health Economics Fall 2009. Outline. Competitiveness of the pharmaceutical industry Conduct Performance. Benefits of Drugs. Reduce mortality Reduce morbidity/improve quality of life Reduce cost of treating diseases. Industry Structure.
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Professor Vivian Ho
Company Sales $b
Johnson & Johnson 16.0
Merck & Co 15.5
Hoffman-LaRoche (incl Genentech) 13.1
Express Scripts Drug Trend Report, 2006
“…managed care emphasizes less-expensive, preventive types of treatment”
“The rate of growth for drugs to treat high blood pressure and high cholesterol in certain managed-care strongholds on the West Cost has gone off the charts”
“Consumers in the $94 billion prescription drug market are mostly indifferent to price. What will happen when they all become budget conscious?