Question

how is it possible that a generic medication is 4.20 and the name brand drug is 42.00? what is direct to consumer marketing and how it related to the pharmaceutical industry? how does third-party payer effect the overall costs of pharmaceutical drugs in the united states?

Answer 1

It is fairly possible in Generic drugs case scenario where US laws do not permit generic drug to look like other branded drugs in market. Hence generic drugs usually keep drug name and product name on similar lines to abide laws and create top of mind recall.

Direct consumer marketing is selling product directly from seller to consumer eliminating any fprm of advertising medium. This is effective when drug is different from other products in market and is aimed to explain benefits and dosafe and effectiveness in personal way via sales teams. This helps generic brand names save on cost and pass on added benefits to customers.

Third party insurers can be private or government owned companies which reimburse certain percentage of cost to pharmacists or patients. However this has increased revenues of pharmacists from patients with prescription but have diminished their profitability Also third party insurers have brought in automation and operational efficiency and saved time to market.