Digital Commons Network^™

Economic Analysis Of Price Determinants In Pharmaceutical Industry In United States, Vikas Singh

Vikas Singh

Executive Summary: In recent years increase in spending for prescription drugs in US has outpaced spending in every other category of health expenditures. Expenditure on the prescription drugs in recent years has grown more rapidly then any other component of health care. National prescription drug spending rose by about 4 ½ (inflation adjusted rate of 14.5% since 1997) times from $40.3 billion in 1990 to $179.2 billion in 2003. Prescription drug expenditure growth galloping by about 17% per year is the fastest growing item in health care inflation. It accounted for 11% of total healthcare spending (which was only 5.8% …