How Drug Companies Price Their Products
California-based executive Chris Manfuso serves as the national director of sales for both Nubratori RX and its sister company Enovachem Pharmaceuticals. At the two Torrance-based businesses, Chris Manfuso is responsible for leading business development and improving revenue generation to support the companies as they grow.
The cost of prescription drugs often results in patients being unable to afford the medicine they need, thus abandoning treatment entirely or skipping certain doses. While drug companies are relatively unregulated when it comes to pricing medication they create, manufacturers actually have relatively little say in what patients pay for their medicine.
A drug manufacturer initially sets the list price of a particular drug. This price is usually based on the uniqueness of the drug, it’s potential impact on medicine and treatment options, the competition for the medication, and the research and development cost of discovering the compound. As with most companies, the goal of many pharmaceutical businesses is generating the most revenue possible, but this doesn’t equate to pricing the medicine as high as possible.
In fact, pricing drugs too high or too low greatly impacts the success of the medication, so drug companies will often take this into consideration when negotiating pricing. Further, many manufacturers provide discounts and rebates to state, federal, and private payers, so patients are often not paying the original list price of the medication. When it comes to the price patients pay for medicine, it is often more affected by decisions made by pharmacy benefit managers and health insurance companies than pharmaceutical businesses.
