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People also ask
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How do pharmaceutical companies price their drugs?
When pricing their drugs, pharmaceutical companies consider a drug's uniqueness and effectiveness as well as competition from other companies. Companies also consider the research and development (R&D) costs required to bring a drug to market.
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How does a pharmaceutical manufacturer determine the price of its drug?
There are essentially no regulations governing how drugs are priced. Instead, pharmaceutical companies select a price based on a drug's estimated value, which typically translates into what they “believe the market will bear,” said Dr. Aaron Kesselheim, an associate professor of medicine at Harvard Medical School.
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How do pharmaceutical manufacturers ensure that medicines are of a high quality?
Everything must be tested, from raw materials all the way through to the final pharmaceutical product. Different attributes are checked to ensure that defects are not present, and if defects are present, they must be corrected by collaborating with the relevant groups within manufacturing and supply.
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How does the FDA regulate drug prices?
The FDA does not have the authority to regulate the prices of drug products in the United States. Manufacturers, distributors, and retailers establish these prices.
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