The major ethical issue
facing the pharmaceutical industry is the pricing. The drug
pricing is increasing rapidly. The consumers are dismayed because
the price is rising at rates that are disproportion to the
inflation pricing.
Root causes for price
increase-
- Government policies and procedures make it easier for the
pharmaceutical companies to raise price.
- Cost involved in the approval process from the FDA (Food and
Drug Administration) forces the pharmaceutical industry to raise
the price level.
- Greed of pharmaceutical company owners or board. For example,
Martin Shkreli who raised the price of the drug Daraprim by more
than 5,000 percent.
- Difficult to set a fair price in the wide pharmaceutical market
sprawled across the globe.
- Huge investment involved in drug research and development.
Possible
solutions-
- Government regulatory pricing should be set for certain
standards and the pharmaceutical companies need to adhere to these
regulations.
- The market economy should be such that the companies should
share the price of the drugs that is consumer good. The focus
should be on the social responsibility of the consumers.
- Strict laws should be framed to avoid personal intention such
as greed.