Why medicine comes with fewer pills but costs more

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The healthcare industry took one of the biggest blows during the economic crisis. Marked by ever-increasing costs that trickle down to the patients, the medical sector has been thrown under the political spotlight and has been the topic of heated public debate for years. While several solutions and policy amendments have been put into effect, improvements are slow to materialize and are inconsistent across the nation.

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One of the upsets in the healthcare industry was fueled partially by the patent expiring for several fast-selling drugs. Generics took the opportunity to cash in and, in effect, made it difficult for Big Pharma companies to maintain their profits. The decrease in demand inevitably resulted to a cut back on supply, but with profit loses on all fronts, branded medicine makers could not afford to reduce their prices. In fact, to compensate for the loss that would result from producing fewer medicines, patent-holding medical companies had to increase their prices to maintain profit margins.

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Having accepted defeat in some arenas, branded medicine does little to attempt outselling or even competing with generics. Instead, it continues to market expensive, branded drugs to a select group of buyers who have grown to trust and prefer branded pills over generics. To remain competitive, Big Pharma companies have also taken to developing drugs that they can still hold the patent for, such as blood pressure-regulating pills or cholesterol-reducing supplements.


As a marketing executive in the healthcare industry, Mary Szela, the senior vice president of Global Strategic Marketing and Services at Abbott Laboratories, is one of the first to know about changes in the medical and healthcare industry. Stay updated on current developments by visiting this website.