Pricing of a New Drug
Antidepressant drug are used to treat and manage depression. Pricing is not only determined by adding up the production costs but the market forces of demand, the figures are not fixed but change over timer. The price of the new antidepressant drug will also be determined by other drugs within its class that are already in the market, and also other drugs in its class on the production pipeline and shall launch to the market in the future. But this can only be a challenge if the standards and quality of the new antidepressant drug is just within the rating of the drugs already in the market.
Due to the current hard economic ti...
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...mes my rating is a medium. The unmet needs of the people are very important in price determination of the new antidepressant drug. Currently the rate of the depressed people in the United States is very high due to joblessness and the economic crunch and the number is even expected to be on the increase until the time when the economy will recover and stabilize. Thus, the launch of the drug is very timely and prices are expected to be relatively high due to its great demand and its effectiveness. My rating is a high.
The pricing is also determined by the intended primary users of the drug. Currently depression is cutting across the divide and the set price must be affordable to all, but mainly considering those in the low earning bracket since they are expected to be hard hit and eventually have a low purchasing power compared to the middle and upper class. Depression is also expected to be high among the low class earners.
References. Rush, A. J. and Kupfer, J. 2001. Strategies and Tactics in the Treatment of Depression. Washington. American Psychiatric Publishing.