Drug price cuts this road why does not work.docVIP

 PAGE \* MERGEFORMAT 7 Drug price cuts this road why does not work Past decade, drug prices 19 times, but why people do not feel it inside? Some in the pharmaceutical market, the phenomenon is simply painfully pondering. According to market demand theory, lower prices of products will lead to growth in demand, but it does not bear fruit in the pharmaceutical market. The market price of many drugs continue to decline in the growth in sales is not, and some even disappear from the market. The face of the classic supply and demand curves, use this to analyze the pharmaceutical market, is it the same as if the shape is a big ‘*’ do? Let’s analyze why the market demand theory does not apply pharmaceutical market. First of all, the theory behind the market demand, consumers, consumer preferences determine the demand for the product, while the demand for drugs is not determined by the preferences of consumers, but the decision by the incidence rate. Consumer preference for a product may be subject to price effects, given the product prices, increased consumer preference for the product, the product may increase the market demand, while sales will also grow accordingly. While the price of drugs does not affect the incidence, therefore drugs are not subject to market demand for the impact of drug prices, but the demand for drugs will affect the price of drugs, such as SARS led to antiviral drugs, such as Banlangen from 3 yuan / Bag soared to 100 yuan / bag. Again, the sales of generic products by consumers in addition affected by the impact of consumer preferences, but also determined by the purchasing power of consumers, when prices fall, consumer purchasing power is enhanced, the volume growth, price increases, purchasing power weakened, sales decrease. And when the prices of drugs, although the purchasing power of patients increased, but was limited by the incidence of sales does not necessarily increase the contrary, due to a decline in sales will lead to all as