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In this essay, the writer claims that for several years, the pharmaceutical sector has been regarded as a certainty in the world of investing. The writer argues that in America today, more drugs are needed to fight arthritis and lower cholesterol levels, and treating disease with medicine is far more cost-effective than surgery and other procedures. The writer examines the topic of expenditures for prescription drug coverage and maintains that as society does not worry about prices when it comes to healthcare, the large drug-makers boast astounding profit levels, gross margins of 80 percent, operating margins of 35 percent. The writer concludes that drug companies began to focus on blockbuster drugs and did everything possible to squeeze every bit of profit from them, thus after the initial wave of breakthroughs, the big money was largely in imitation, not innovation.
From the Paper:"However, the drug giants were actually profoundly less innovative through the 1990s than they appeared to be, and their amazing growth numbers were due to a handful of drugs that addressed a surprisingly narrow range of conditions. Furthermore, they copied one another's drugs while ignoring promising avenues of research, and merged with one another, slashed costs, and sometimes, propped up earnings. Overall, 2002 was not a good year for pharma stocks, and the primary culprit appears to be the fact that big drugs like Claritin came off paten and saw sales plummet as generic versions hit the market, while few new drugs came along to replace them. Added to all of this are several scandals over product safety and the growing anger from consumers and policymakers over rising drug prices, resulting in serious challenges for the drug companies."
Sample of Sources Used:
- 2006 R&D funding improves amid increasing restraints: most indicators are up for the new year, but overall R&D spending is at reduced levels from previous years and the next several years looks like more of the same. (2006 January 01). R & D. Retrieved February 23 2006 from HighBeam Research Library Web site.
- Adiga, Aravind. (2003 April 01). Drug Stocks Go Cold. Money. Retrieved February 23 2006 from HighBeam Research Library Web site.
- Darling, Helen. (2005 May 01). Healthcare cost crisis and quality gap our national dilemma: advances in technology, prescription drugs, and diagnostic testing can cure what ails us, but the price is steep. Can we have it all? Healthcare Financial Management. Retrieved February 23 2006 from HighBeam Research Library Web site.
- Fox, Peter D. (2003 December 22). Prescription drug benefits: cost management issues for Medicare. Health Care Financing Review. Retrieved February 23 2006 from HighBeam Research Library Web site.
- Miller, Maricris. (2005 September 22). A closer look at the concept, historical overview, and value of direct-to-consumer advertising of prescription drugs. Hospital Topics. Retrieved February 23 2006 from HighBeam Research Library Web site.
Cite this Argumentative Essay:
Prescription Drugs (2007, February 05) Retrieved November 20, 2019, from https://www.academon.com/argumentative-essay/prescription-drugs-91787/
"Prescription Drugs" 05 February 2007. Web. 20 November. 2019. <https://www.academon.com/argumentative-essay/prescription-drugs-91787/>