With the Downturn in the world economy already putting the pharmaceutical industry under pressure, an increasingly small number of novel products are coming to market. The innovation capacity of the pharmaceutical industry is determined, to a great extent, by the external environment. Consequently, pharmaceutical innovation is likely to suffer, partly due to increasing government barriers precluding access to reimbursement lists. Furthermore, as governments push for greater use of generic drugs, the pressure on big pharmaceutical companies and their ability to be innovative will increase.

Cost-effectiveness and safety of a product are at the top of the agenda for payers. Global healthcare costs are rising due to ageing populations and poor lifestyle choices - particularly in western markets. Consequently, governments and payers across the seven major markets are implementing numerous healthcare cost-containment policies.

The US system of funding healthcare, which is generally seen as spending lavishly by international standards, has also become more cost conscious due to rising healthcare costs, which in turn are driving up insurance premiums. Insurance firms are beginning to seek better deals on prescription drugs from pharmaceutical companies in order to avoid raising insurance premiums further in a country that is in an economic recession.

For those patients in the US that do not have the means to afford medical insurance, a pilot scheme (introduced by the FDA in 1988) exists, whereby patients can order up to three months supply of medication by providing a registered pharmaceutical supplier with a valid prescription. More details of the service that Masters provides can be found in the ‘Customer’ page of our website.