The Prescription Drug Pricing Pathfinder
May 19, 2000 / Exam #0967

TABLE OF CONTENTS
(Click on the Highlighted Links to View Each Section)

A. OVERVIEW

1. Introduction
2. How to Use this Pathfinder
3. Pharmaceutical / Health Care Glossary
4. Current Prices and Recent Increases
- Sources for Drug Price Information

5. Who manufactures & sells drugs?
- Pharmaceutical Industry Overview
- Pharmaceutical Trade Associations

6. Who has the power to regulate drugs?
- FDA
- -Food, Drug & Cosmetic Act of 1938
- -1962 Amendments
- FTC

B. FACTORS AFFECTING THE COST & PRICE OF DRUGS

1. Pharmaceutical Industry Costs

• R & D
• FDA Approval
• Prescription Drug User Fee Act
• Manufacturing
• Advertising

2. Statutory Protection

• 20 Year Patent Terms
• Patent Extension Provisions
• Reimportation Ban

C. ATTEMPTS TO CONTROL DRUG PRICES

1. Current attempts to control drug prices

• President Clinton's Medicare Plan
  
• Congressional Bills
• State Efforts
  • Maine
  • Vermont
  • New England Consortium
  • California
  • Other States
• Organizations
  
• News Sources

2. Potential problems with controlling drug prices

• States may exceed their regulatory authority
  
• States may violate antitrust laws
  
• Price regulation may impair research and development of new drugs
  
• The pharmaceutical industry has tremendous political clout