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

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

3. Most common Rx drugs Name Treatment for
Synthroid = 21.5 million/month (7% of the pop)
Crestor
Ventolin
Nexium
Advair
Lantus
Vyanese
Lyrica
Spiriva
Januvia

4. 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

5. Most profitable drugs Drug Company Use $ Lipitor Pfizer
Cholesterol-lowering
13.5B
Plavix
Sanofi-Aventis
Prevent blood clots
7.3B
Nexium
AstraZeneca
Acid reflux
7.27B
Seretide
GSK
Asthmna
7.2B
Enbrel
Amgen
Autoimmune (arthritis, psoriasis)
5.4B

6. 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

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

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

9. Substance Abuse

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

11. 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

12. Commonly abused street drugs
Type
Categories
Example
Hallucinogens
Lysergic Acid Diethylamide
Psilocybin
LSD
Mushrooms
Cannabinoids
Natural
Synthetic
Marijuana
K2 and Spice
Depressants
Opioids
Cannabis
Synthetic Cannabinoids
Benzodiazepines
Heroin
Rohypnol
Stimulants
Cocaine
Methamphetamine
Crystal Meth

13. DIRECT TO CONSUMER ADVERTISING

14. 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

15. 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%

16. Which is the most effective?
DTC
Detailing and Sampling?