Supply and Demand: Pharmaceuticals

Changes in Supply, Demand, and Price

Introduction

Prior to 2004, vaccinations to prevent the most common human diseases were pronto available. In the 1950s, there were 26 pharmaceutical companies that made vaccinums in the unite States; however, by 2004 only four such companies remained. For instance, era the demand for the flu vaccine has risen sharply, the go forth of the vaccine has declined; consequently, the price of the vaccine has increased. The problem has now reached widespread proportions. everywhere the past three decades the vaccine infrastructure in the United States has steadily crumbled (Serafini, 2006).

Supply

Since the 1950s, the supply of flu and childhood disease vaccines has proceed to descend due to financial reasons. Vaccine production has not traditionally been a lucrative business, and everything comes down to money (Serafini, 2006). It is not profitable enough for pharmaceutical companies to build expensive plants to supply the one or two doses needed for most vaccines when companies give the bounce make more money manufacturing a drug that community will take daily for chronic conditions. Along with the decrease in the production of vaccinations by pharmaceutical companies, another major concern that is adding to the problem is lawsuits. The vaccine industry today is charge $6.7 billion, approximately, and lawsuits out there are adding up. Damages being desire exceed $30 billion, total (Serafini, 2006).



The federal regulations for the manufacture of vaccinations were getting tougher, making it even more expensive for vaccine makers to stick in business. So, as cost continued to increase for producers of vaccines, these companies reduced their supply and, in turn, raised their prices. Yet, the demand for vaccines continues to increase class after year.

Demand

Vaccines are needed in greater quantities than the pharmaceutical companies are manufacturing today. Between 1998 and 2004, nine of the 12 vaccines routinely given...

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