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Historically, the drug industry has been one of the most profitable in the United States of America and has been attributed to the relatively high cost of drugs compared to other developed countries. The call on drug companies to reduce the costs has increased tremendously with the industry strongly resisting, claiming costs are justified to support research and development of newer and better drugs. This debate is currently ongoing in the legislature with strong lobbying from both sides of the divide. Hence, the main objective of this research is to determine the reasons for the high cost of prescription drugs in the United States compared to other countries and suggest ways to make drugs more affordable. The solution to the problem will most likely come from a compromise by both sides involving government funded research and production of generic drugs by companies. This would bring down the cost of drugs while ensuring continuation of research and development and guarantee reasonable profits for the drug industry.

Drugs Company Profits In The United States: Are They Excessive? Evidence From Public Administration Perspectives