Transcription of Understandingthe pharmaceutical value chain
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Understandingthe pharmaceutical value chain
Pharmaceuticals Policy and Law 18 (2016) 55 6655 DOI PressUnderstanding the pharmaceutical value chainMurray AitkenIMS Institute for Healthcare Informatics, 100 IMS Drive, Parsippany, NJ 07054, USATel.: +1 973 316 4034; Fax: +1 973 541 3589; E-mail: the pharmaceutical value chain requires the identification of each component from man-ufacturer to end consumer of medicines and to understand their interaction. In most cases, the manufac-turer s selling price represents only a fraction of the retail price of a drug. More than half of the end userprice results from insurance, freight charges (CIF), import tariffs and charges, importer margin, distributormargin, retailer margin and article describes the elements of the medicine value chain , outlines factors and costs that contributeto the difference between the net price a pharmaceutical manufacturer receives for a drug and the finalamount paid for the drug by the end user.
M. Aitken / Understanding the pharmaceutical value chain 57 Fig. 1. Costs incurred and value added in components of the pharmaceutical value chain. and bring new medicines to market. Due to the large financial investment involved, these medicines receive a period of market exclusivity. At the point this expires,
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