This study investigates the pricing of the five brand name prescription drugs with the highest sales to the elderly. For comparison purposes, the study also estimates the differential between prices for favored customers and retail prices for other consumer items. That Drug Companies Charge Their Most Favored Customers. For other popular drugs, the price differential is even higher. The drug with the highest price differential was Synthroid, a commonly used hormone treatment manufactured by Knoll Pharmaceuticals.
Price differentials are far higher for drugs than they are for other goods.
This study compared drug prices at the retail level to the prices that the pharmaceutical industry gives its most favored customers, such as large insurance companies, government buyers with negotiating power, and HMOs. The study found, however, that the differential was much higher for prescription drugs than it was for other consumer items. The study compared the price differential for prescription drugs to the price differentials on a selection of other consumer items. Compared to manufacturers of other retail items, pharmaceutical manufacturers appear to be engaging in significant price discrimination against older Americans and other individual consumers. Pharmaceutical manufacturers, not drug stores, appear to be responsible for the discriminatory prices that older Americans pay for prescription drugs.