Due to double-digit price increases on prescription medicines in the developed world, health insurance companies are now taking costs into account when deciding which new drugs to include for third party reimbursement. This puts more pressure on drug manufacturers to prove their newer, higher-cost medications are worth the money being charged.
In 2004, the Medicare reform law in the United States allocated funds to conduct research on the comparative effectiveness of prescription drugs as part of a $50 million program. It is therefore increasingly clear that drug companies will have to demonstrate the cost effectiveness of the new drugs.
Studies conducted in the United States and Europe have determined that the new drugs produced by pharmaceutical companies are more likely to be approved by the health insurance companies if their cost effectiveness has been demonstrated. This is where pharmaceutical contract manufacturing comes into picture.
One way of cutting down on the cost of drugs is by outsourcing the manufacture of drugs to companies such as Radico Remedies that specialize in pharmaceutical contract manufacturing. With a world-class plant, we can cut down on the cost of producing the drugs due to our lower costs.
Furthermore, our new plant is located in the excise tax free area at Barotiwala, so there's the added advantage of tax saving. To know more about our charges or to talk to our marketing department, please fill up the pharmaceutical contract manufacturing enquiry form. We look forward to hearing from you.
To contact us, please fill up our enquiry form