A macromarketing analysis of prescription drugs in the U.S.

Abstract

The U.S. prescription drug macromarketing system is examined. Over time, this system has become unbalanced. The system has evolved into one in which market competition has been restricted. This market system now has substantial entry barriers, producer collusion, and extensive linkages between producers and government resulting in government protection of producers. Suggested reforms are offered which aim to bring into greater harmony the interests of both producers and society, while acknowledging the importance of prescription drugs to society and maintaining producer incentives to invest in research and development of innovative new drugs.