
Did you ever wonder how much it costs a drug company for the active ingredient in prescription medications? Some people think it must cost a lot, since many drugs sell for more than $2.00 per tablet. Sharon L. Davis lead a research investigation of offshore chemical synthesizers that supply the active ingredients found in drugs approved by the FDA. As revealed in past issues of Life Extension, a significant percentage of drugs sold in the United States contain active ingredients made in other countries.
In the independent investigation of how much profit drug companies really make, they obtained the actual price of active ingredients used in some of the most popular drugs sold in America The data below speaks for itself.
- Celebrex: 100 mg Consumer price (100 tablets): $130.27. Cost of general active ingredients: $0.60 Percent markup: 21,712%
- Claritin: 10 mg Consumer Price (100 tablets): $215.17. Cost of general active ingredients: $0.71 Percent markup: 30,306%
- Keflex: 250 mg Consumer Price (100 tablets): $157.39. Cost of general active ingredients: $1.88 Percent markup: 8,372%
- Lipitor: 20 mg Consumer Price (100 tablets): $272.37. Cost of general active ingredients: $5.80 Percent markup: 4,696%
- Norvasc: 10 mg Consumer price (100 tablets): $188.29. Cost of general active ingredients: $0.14 Percent markup: 134,493%
- Paxil: 20 mg Consumer price (100 tablets): $220.27. Cost of general active ingredients: $7.60 Percen t markup: 2,898%
- Prevacid: 30 mg Consumer price (100 tablets): $44.77. Cost of general active ingredients: $1.01 Percent markup: 34,136%
- Prilosec : 20 mg Consumer price (100 tablets): $360.97. Cost of general active ingredients $0.52 Percent markup: 69,417%
- Prozac: 20 mg Consumer price (100 tablets) : $247.47. Cost of general active ingredients: $0.11 Percent markup: 224,973%
- Tenormin: 50 mg Consumer price (100 tablets): $104.47. Cost of general active ingredients: $0.13 Percent markup: 80,362%
- Vasotec: 10 mg Consumer price (100 tablets): $102.37. Cost of general active ingredients: $0.20 Percent markup: 5 1,185%
- Xanax: 1 mg Consumer price (100 tablets) : $136.79. Cost of general active ingredients: $0.024. Percent markup: 569,958%
- Zestril: 20 mg. Consumer price (100 tablets) $89.89. Cost of general active ingredients $3.20 Percent markup: 2,809
- Zithromax: 600 mg Consumer price (100 tablets): $1,482.19. Cost of general active ingredients: $18.78 Percent markup: 7,892%
- Zocor:40 mg. Consumer price (100 tablets): $350.27. Cost of general active ingredients: $8.63 Percent markup: 4,059%
- Zoloft: 50 mg Consumer price: $206.87. Cost of general active ingredients: $1.75 Percent markup: 11,821%
Steve Wilson, an investigative reporter for Channel 7 News in Detroit, did a story on generic drug price gouging by pharmacies. He found in his investigation, that some of these generic drugs were marked up as much as 3,000% or more. Yes, that's not a typo.....three thousand percent!
So often, we blame the drug companies for the high cost of drugs, and usually rightfully so. But in t his case, the fault clearly lies with the pharmacies themselves. For example, if you had to buy a prescription drug, and bought the name brand, you might pay $100 for 100 pills. The pharmacist might tell you that if you get the generic equivalent, they would only cost $80, making you think you are 'saving' $20. What the pharmacist is not telling you is that those 100 generic pills may have only cost him $10!
At the end of the report, one of the anchors asked Mr. Wilson whether, or not there were any pharmacies that did not adhere to this practice, and he said that Costco consistently charged little over their cost for the generic drugs. I went to the Costco site, where you can look up any drug, and get its online price.
It should be mentioned, that although Costco is a 'membership' type store, you do NOT have to be a member to buy prescriptions there, as it is a federally regulated substance. You just tell them at the door that you wish to use the pharmacy, and they will let you in.
Author: Sharon L. Davis Budget Analyst U.S. Department of Commerce