Prescription Drugs

Donkey® · 02-18-2008, 03:12 AM

So can someone explain to me why the exact same Zyrtec I bought last month for 70 bucks using my prescription plan (30 ct 10mg pills) is now sold without a prescription for 19 bucks? (30 ct 10mg pills). I don't get it.

kinggovernor · 02-18-2008, 09:02 AM

generic versus brand name

Donkey® · 02-18-2008, 09:04 AM

Originally Posted by kinggovernor

generic versus brand name

What? It's EXACTLY the same Zyrtec.

bheld · 02-18-2008, 09:08 AM

The pharmacist doesn't have to touch the OTC zyrtec.

7960 · 02-18-2008, 09:49 AM

Originally Posted by bheld

The pharmacist doesn't have to touch the OTC zyrtec.

werd

With prescription comes liability. If a doc gives it to you and you die he has to defend himself. If you pick think it's right and buy it yourself then you're responsible.

Ardentfrost · 02-18-2008, 10:06 AM

Actually, it's because of revenue management.... the demand formula has changed, therefore the price must also change. Drugs are VERY sensitive to fluctuations in demand and pricing formulas.

Before you could get it OTC, the demand was based on Doctors prescribing it. But now, anyone who thinks they have those symptoms can buy it. This greatly alters the demand curve. Calculate in factory capacity, optimize over revenue, set new price.

It's simple supply side economics.

Also, since it's OTC now, I suggest looking for a generic version of it. Branding is also a form of revenue management when the reality is most generic drugs are made in the same factories as the branded drug. The difference is only in perception (I have heard of one type of medicine that this isn't the same for: thyroid medicine... I'm not fully sure why that is)

Stylerod · 02-18-2008, 10:15 AM

I think my son is on Zyrtec for his allergies. We get the generic through my prescription plan and I think I'm paying $24 for 3 months worth.

Donkey® · 02-18-2008, 10:28 AM

Originally Posted by Ardentfrost

Actually, it's because of revenue management.... the demand formula has changed, therefore the price must also change. Drugs are VERY sensitive to fluctuations in demand and pricing formulas.

Before you could get it OTC, the demand was based on Doctors prescribing it. But now, anyone who thinks they have those symptoms can buy it. This greatly alters the demand curve. Calculate in factory capacity, optimize over revenue, set new price.

It's simple supply side economics.

Also, since it's OTC now, I suggest looking for a generic version of it. Branding is also a form of revenue management when the reality is most generic drugs are made in the same factories as the branded drug. The difference is only in perception (I have heard of one type of medicine that this isn't the same for: thyroid medicine... I'm not fully sure why that is)

Ok, then who decided to make it OTC now? The government? The company? How are the costs affected by things like mass shipping, new packaging, etc?

7960 · 02-18-2008, 10:34 AM

Originally Posted by Ardentfrost

Actually, it's because of revenue management.... the demand formula has changed, therefore the price must also change. Drugs are VERY sensitive to fluctuations in demand and pricing formulas.

Before you could get it OTC, the demand was based on Doctors prescribing it. But now, anyone who thinks they have those symptoms can buy it. This greatly alters the demand curve. Calculate in factory capacity, optimize over revenue, set new price.

It's simple supply side economics.

Also, since it's OTC now, I suggest looking for a generic version of it. Branding is also a form of revenue management when the reality is most generic drugs are made in the same factories as the branded drug. The difference is only in perception (I have heard of one type of medicine that this isn't the same for: thyroid medicine... I'm not fully sure why that is)

Did you basically just say "since more people can buy it they're reducing their profit margin"?

Ardentfrost · 02-18-2008, 10:46 AM

Originally Posted by Donkey®

Ok, then who decided to make it OTC now? The government? The company? How are the costs affected by things like mass shipping, new packaging, etc?

OTC has to be FDA approved. They probably applied for it a long time ago and only recently got clearance to do it.

Ardentfrost · 02-18-2008, 10:50 AM

Originally Posted by 7960

Did you basically just say "since more people can buy it they're reducing their profit margin"?

It's not that simple, the demand is modeled based on market data. There are people out there who gather data from potential customers and customers of similar products, surveys, etc... then people like me model the demand and optimize the revenue.

There are probably also different prices depending on where you live, the time of year you buy the product, what store you buy the product from, there are possibly coupons out there, discounts based on the customer or the amount you buy... all that is value-based pricing (or price discrimination). OTC drugs can actually use those practices whereas it's more difficult to implement them on prescription drugs (other than branding) depending on the market for the drug.

DosEquis · 02-18-2008, 10:59 AM

i experimented with a 100mg viagra last week. It really didn't do much other than increase my NARBs by like 3x.

kinggovernor · 02-18-2008, 11:11 AM

Originally Posted by DosEquis

i experimented with a 100mg viagra last week. It really didn't do much other than increase my NARBs by like 3x.

7960 · 02-18-2008, 11:14 AM

Originally Posted by kinggovernor

I had to look up NARB

DosEquis · 02-18-2008, 01:12 PM

i heard all these stories.... since I am 180lbs i should only take half... or that my face would feel hot, or i'd see a blue tint, or the warnings about the whole 4 hour boner thing.... none of it was true. Its probably just some placebo conspiracy to sell a garbage medicine that is all just mental. My NARBs were probably generated by the "i just took 100mg of viagra I should probably have a stiffy right now" thoughts going through my head.

kinggovernor · 02-18-2008, 01:24 PM

Originally Posted by DosEquis

i heard all these stories.... since I am 180lbs i should only take half... or that my face would feel hot, or i'd see a blue tint, or the warnings about the whole 4 hour boner thing.... none of it was true. Its probably just some placebo conspiracy to sell a garbage medicine that is all just mental. My NARBs were probably generated by the "i just took 100mg of viagra I should probably have a stiffy right now" thoughts going through my head.

RMNIXON · 02-18-2008, 04:37 PM

Originally Posted by 7960

werd

With prescription comes liability. If a doc gives it to you and you die he has to defend himself. If you pick think it's right and buy it yourself then you're responsible.

Don't you mean liability insurance so John Edwards can get Rich and care more about you?