Question

Drug prices have been a significant contributor to rising health costs recently. This article explains why medicine costs so much in the U.S. Pharmaceutical companies say they need these higher prices to fund research and development. Critics say this is price gouging. With which side do you tend to agree? If you believe drug prices are excessive, what would you propose to curb them? refer to "why medicine cost so much in america.      

Why medicine costs so × LTX → 。 숲 file ///C Users jara Downloads/Why%20medicine %20costs%200%20 uch 20 %20A mera.pdf hy medicine costs so much in America - Vox http://www.vox.com 2015V12/1810581682/drug-cost-prices-set-us Vox Why medicine costs so much in America Updated by Julia Belluz on December 18, 2015, 10:40 a.m. ET y @juliaoftoronto [email protected] Type here to search 04脈ょーし 6:19 PM 1/29/2018 3

Answer 1

It's a mixture of both the reasons.

Pharma companies do need large amounts of money to rund research and then they engage in price gouging to keep prices high and make supernormal profits.

However, the most dominant one is the price gouging argument because pharna companies are known to intentionally keep prices very high to make profits.

The best way to curb excessive prices are government intervention. Government should compensate these companies for their research and make sure that the very needy and important medicines are kept at nominal prices which the poor can afford in times of emergency.