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What does the price of viagra?

The final price of viagra for a package of medicine in a pharmacy consists of many components: In theory, all of them should be clear and logical, but in fact it turns out that even specialists can not always explain why medicines with the same active substance can differ in price by thousands of times.

On the one hand, medicines, like any other product, obey the laws of the market and depend on supply and demand. On the other hand, it is a product of strategic importance – the health of its residents depends on its price and availability in a particular country. How and who forms the price of a medicine, and will they ever become cheaper?

Price of viagra: How much does Viagra cost?

The cost of any medicine consists, first of all, of its cost price – the real costs of the manufacturer for the development, research and production of a particular drug. It is believed that the cost is 30-35% of the final cost of the drug, but no one knows for sure.

In the total price of viagra (of the other drug), the cost of the active substance is no more than 5%, 20% is the trade margin, which is laid down by the manufacturer himself, 25% is the cost of research and development and half of the cost of one package of medicine is the cost of marketing: promotion of the drug on the market and advertising, because launching a new drug on the market is a very risky process.

The cost of producing a newly invented drug is estimated in billions of dollars. Therefore, the price of original drugs will always be fairly higher than the prices of reproduced drugs.

Every year, only about 15 new molecules appear in the world, respectively, the number of new original drugs on the market per year is calculated in units. In 1995, the cost of bringing one original drug to the market (including conducting preclinical, clinical and post-marketing studies) averaged about $ 100 million, in 2000-2005, the costs of one manufacturer increased to almost one and a half billion dollars, now they reach $ 10 billion – this is like the budget of a large European city.

At the same time, it can take up to 10-12 years for the manufacturer to develop only one drug. And at every stage of development – from the chemical laboratory to human testing, there is always a risk of complete failure. Even after all the studies, it may turn out that the drug has side effects that did not manifest themselves on three thousand people, then it will have to be withdrawn from the market, and therefore, lose the money invested in it from scratch.

Why Viagra costs differently?

Price of Viagra: If a drug that has just appeared on the market is invented and synthesized for the first time by one company, it is called original. It has been protected by a patent for 20 years – other manufacturers cannot produce and sell medicines with the same active substance.

After this time, the chemical formula of the drug can be copied by other manufacturers. They register a drug with the same active substance, but under a different trade name. For example, “Viagra” is an original drug from Pfizer with the active substance sildenafil, its analogues with the same substance are kamagra, zenegra, suhagra, penegra and others.

price of viagra

Manufacturers of reproduced drugs (generics) are not required to check their medicine for the identity of the original drug, and therefore, bear the same financial losses as the drug developer had.

According to the legislation, generics and original drugs must have pharmaceutical equivalence (that is, they contain the same active substance in the same dosage), biological equivalence (they are equally absorbed into the blood and excreted from the body). At the same time, it is not prescribed anywhere that such drugs should act equally, be equally effective and safe, that is, they also have therapeutic equivalence.

In fact, companies that produce generics produce a completely new drug: other dyes that are used in them, other fillers (auxiliary, inactive substances), even another substance of the active substance create a new drug. However, it should not be investigated as thoroughly as its original version.

According to the laws, 20% differences with the original drug are allowed. That is, it is considered normal that out of 100 mg of the active substance, only 80 mg will actually “work”. In addition, these studies themselves are conducted very formally. The manufacturer receives a formal admission to the market, behind which there is nothing.

Since it is cheaper to produce generics (there are no costs for drug development, for safety research), they should cost significantly cheaper than the original drugs. However, what exactly should their price be? In the USA, for example, their price is fixed at around 20% below the price of the original drug, in Europe the difference can be 20-50%. And, for example, in Russia, some reproduced medicines may, by a strange coincidence, be more expensive than the original!

There are medicines that are 1000 times cheaper than the original ones. It would seem that we should be happy about this, but this is very frightening data. They only say that no one checks what patients really buy.

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