Milwaukee Journal Sentinel Examines Prescription Drugs Prices in Three-Part Series

The Milwaukee Journal Sentinel this week profiles the issue of rising prescription drug costs in a three-part series that began April 1. In the first article of the series, the Journal Sentinel explains the forces behind the rise in pharmaceutical prices and explores how Americans deal with the resulting increases. While countries with a national health care system are able to negotiate prices with drug companies or have price controls, the United States is a "highly fragmented market" that has no single buyer who can "apply much leverage" to procure discounts, the Journal Sentinel reports (Fauber/Manning, Milwaukee Journal Sentinel, 4/1). In the second part of the series, published today, the Journal Sentinel reports on pharmaceutical company profits, saying that the industry's leading drug stocks produced total returns averaging more than 450% between January 1995 and February 2001. The industry spent $26 billion on research and development in 2000, up from $15 billion in 1995 (Fauber/Manning, Milwaukee Journal Sentinel, 4/2). The last part of the series, to run tomorrow, will look at government attempts to relieve the cost of prescription drugs.