THE SOCIETAL VALUE OF PHARMACEUTICALS - BALANCING INDUSTRIAL AND HEALTH-CARE POLICY

Pharmaceutical policy arises through an ongoing process of negotiation acid interaction among the key players in the pharmaceutical market: consumers, industry, healthcare providers and government. There is con stant discussion about the just distribution of reward between cost-co ntainment goals and the goals of research and development in the pharm aceutical arena. All industrial countries are under pressure to contro l healthcare costs, but it is unclear how cost-containment policies wi ll influence industrial policies for pharmaceuticals. The pharmaceutic al industry is an easy target for governmental cost-containment polici es. The industry is driven by 3 issues: access to consumers, access to new technology and new competitive realities. The launch of a new, in novative product that represents a significant therapeutic breakthroug h is becoming increasingly difficult, and a major challenge for politi cians and governments will be to balance the need for cost-effective u se of drugs and the need to create a favourable climate for innovation . Previously, there was generally little competition between pharmaceu tical companies, but those companies will now have to undergo fundamen tal and comprehensive changes. Particularly, it will be important to h ave extremely well developed and integrated management systems focusin g on both consumers and costs.