The Economic Implications of Buying Drugs Online
Al though the Internet is fairly new (at least to the
mainstream) online shopping has grown by leaps and bounds. Now
you can buy almost anything you need, from food to fishing
equipment, right through your computer. Of course, this has
meant that commerce has been forced to adapt to the changing
consumer landscape and some industries have been scrambling to
catch up with the crowd. It is no different for the
pharmaceutical industry as online pharmacies appear to be
popping up everywhere you turn. The prevalence of online
pharmacies is a hot topic, especially when it comes to
foreign-based companies selling prescription and
non-prescription drugs to Americans for lower, more affordable
prices. But in addition to foreign-based online pharmacies are a
growing number of U.S. based companies offering medication to
Americans - making it easier and more convenient to receive much
needed prescription drugs.
What impact does this reality have on the drug industry in
general and are the changes positive? The answer depends on what
aspect of the industry you are involved in. Essentially,
pharmaceutical companies who sell their products through
traditional brick-and-mortar operations are worried that online
pharmacies are only going to keep growing - taking a large bite
out of their piece of the pie. For the most part, although the
FDA and the big drug companies talk about safety issues and the
legality of cross-border drug transactions, it really all comes
down to money. It's no wonder many companies, such as Pfizer,
are threatening to restrict supply to Canadian pharmacies that
sell discounted drugs to Americans in an effort to scare these
pharmacies out of their revenue stream.
Trends do seem to point in the direction of continual growth
unless something happens to dampen the excitement the online
pharmaceutical industry is currently experiencing. Since the
90's the industry has continued to flourish. For example, sales
of Canadian drugs to U.S. citizens alone have skyrocketed over
the billion dollar mark in the past few years and all signs
point to this trend enduring. In addition, although these
numbers only represent a dollar volume of 0.35% of the total
annual U.S. prescription drug market, if Americans continue to
use online pharmacies to fill their prescription drug needs it
will have a big impact on the industry as a whole. And of
course, countries such as Canada are enjoying the benefits of a
large consumer base that has a reason to bring their business
north. Many American online pharmacies even offer customers the
option of obtaining Canadian drugs for lower prices through
their sites. As you can see, people are being given more choices
than ever before when it comes to buying prescription
medications. Much of the power to control drug prices is slowly
being taken away from the pharmaceutical companies and put into
the hands of the people that matter the most - the consumers.
Organized pharmacy groups are beginning to voice concern over
the practice as they see the economic consequences of such a
trend, and the whole idea of drug distribution, as well as how
certain goods, services and funds are transferred across the
border. The main reason many people are flocking to online
pharmacies is to save money. If the pharmaceutical industry
wants to stay on top of things and keep customers buying the
drugs they need through U.S. sources, they will need to change
with the times by facilitating the introduction of more online
pharmacies that cater to the U.S. market from within the U.S.
They will also need to be open to more competition within the
marketplace, and most importantly, make it more affordable for
the average American to purchase the prescriptions they require.
It is clear that online pharmacies, both foreign and those based
in the U.S., are in a position to benefit from an
ever-increasing amount of business. Individually, consumers save
money on drugs and can afford to put more money into the economy
through other industries. Online pharmacies usually offer more
choices especially in the way of generic drugs, and make it
extremely easy for patients to obtain the prescription drugs
they seek. Some senior citizens find it more convenient to shop
online than venture out to the local pharmacy. At the same time,
most people still choose to go the traditional route and buy
their drugs in their own neighborhood, which still takes up the
largest part of the market.
While online pharmacies are growing at an exponential rate, it
will still be some time before a major shift from buying locally
to buying online occurs that will drastically alter the way the
pharmaceutical industry functions. In the meantime, consumers
will no doubt continue to consider the options that are most
economically beneficial to them.