PER 2015
‘It is immoral for drug companies to charge large sums for drugs that are cheap to manufacture.’ Discuss. Maurice Khoo
In the drug manufacturing market, there are basically two types of producers, generic drugs producers and brand drugs producers. The major difference between these producers is that the generic one will produce the drugs based on the composition of the drugs researched by the pharmaceutical brand drugs without any cost on the Research and Development (R&D). Therefore, generally generic drug producers can produce drugs with a lower cost.
(Source: http://www.cbc.ca/news/canada/new-brunswick/generic-drug-plan-cuts-costs-dub%C3%A9-says-1.1163078)
The diagram gives an example of the price difference in the brand and generic drug in New Brunswick and it suggests the price of generic drugs can be even lower in other provinces.
(Source: http://franciscanphysicians.blogspot.co.uk/2011/08/generi-cor-brand-name-choice-is-yours.html)
This diagram shows the evidence that the generic drugs can be sold at a lower price due to their lower production cost. This also suggests that the generic drugs in fact has the capability to be sold at a lower price with a lower production cost. However it is impossible for the big pharmaceutical companies who invest a lot in the R&D part for inventing new drugs to provide drug cheaper. As for
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