Module 9 Pharmaceuticals HC Economics Chapter 11 Pharmaceuticals

Module 9: Pharmaceuticals HC Economics Chapter 11: Pharmaceuticals Student lecture

Facts • In a given week 80% of US adults will use some type of pharmaceuticals • Annually

Most common Rx drugs Name Synthroid = 21. 5 million/month (7% of the pop) Crestor Ventolin Nexium Advair Lantus Vyanese Lyrica Spiriva Januvia Treatment for

Was on old list (4 years ago) • • • Hydrocodone realizing a problem not even top 100 Generic Zocor Crestor Lisinopril Diovan Generic Synthroid Same/now higher Norvasc (BP) Diovan Generic Prilosec Nexium Azithromycin realizing a problem not even top 100 Amoxicillin realizing a problem not even top 100 Generic Glucophage Lantus Hydrochlorothiazide (water pill) side effects not even top 100

Most profitable drugs Drug Company Use $ Lipitor Pfizer Cholesterol-lowering 13. 5 B Plavix Sanofi-Aventis Prevent blood clots 7. 3 B Nexium Astra. Zeneca Acid reflux 7. 27 B Seretide GSK Asthmna 7. 2 B Enbrel Amgen Autoimmune (arthritis, psoriasis) 5. 4 B

Pharmaceutical companies by revenue • • • Johnson & Johnson (Band-aid, Tylenol, Accuvue) = US Gilead Science (Tamiflu, HIV/AIDS drugs) = US Merck & Co (Gardasil, Zocor, Propecia) = US Novartis (Ritalin, tegretol) = Switzerland Roche (Valium, Accutane) = Switzerland Pfizer (Chapstick, Xanax, Zoloft) = US Sanofi (Codeine, Allegra, Ambien) = France Amgen (Embrel, Neulasta) = US Novo nordisk (Novolog, Victoza) = Denmark Glaxosmithkline (Advair, Boniva) = UK

OTC/CAM • 8 in 10 consumers use OTC/CAM • 8% of pharmaceutical sales • Common illnesses

Pharmaceutical sales • Pharmaceuticals are very profitable • 10% of national expenditures • 2014 • Worldwide = 981 B • 48% US

Substance Abuse

Legal drugs Type Example Alcohol Beer, Wine, Liquor Nicotine Smoked tobacco (cigarettes, cigars), Ecigarettes, Smokeless tobacco (dip) Caffeine Sodas, Coffee

Commonly abused prescription drugs Type Categories Example Depressants Barbiturates Benzodiazepines Sleep medications Nembutal Valium, Xanax Ambien Opioids and Morphine Codeine Other Opioid Pain relievers Oxycontin, Percocet, Vicodin Steroids N/A Anabolic steroids Stimulants Amphetamines Methylphenidate Adderall Ritalin Other Dextromethorphan Cough and cough

Commonly abused street drugs Type Categories Example Hallucinogens Lysergic Acid Diethylamide Psilocybin LSD Mushrooms Cannabinoids Natural Synthetic Marijuana K 2 and Spice Depressants Opioids Cannabis Synthetic Cannabinoids Benzodiazepines Heroin Marijuana K 2 and Spice Rohypnol Stimulants Cocaine Methamphetamine Cocaine Crystal Meth

DIRECT TO CONSUMER ADVERTISING

DTC • Direct-to-consumer advertising (DTC advertising) • • • Spend $2. 5 billion/2005 Marketing of pharmaceutical products Directed towards the patients, rather than health care professionals FDA regulates DTC advertising Forms • TV, print, radio, social media • Only 2 countries allow it

How does DTC affect prices? • Raises the demand (sales) for the advertised drug as well as its price. • 100% increase in DTCA • Increase demand by 10% • Increase price by 5%

Which is the most effective? • DTC • Detailing and Sampling?