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Oxybutynin chloride price at the wholesale level of $4.45 per grams, from $5.99 in the United States. reason for decrease in demand is that the being met by production of a new and non–competitive market–controlled drug. This situation presents both an opportunity for a new market–controlled drug and threat for price control. The second and most concerning aspect of the FDA's position is that although the FDA does not have authority to regulate the price of drugs, it can still regulate the market in which drugs are traded to determine whether there is a market failure and whether there is a likelihood of continuing need for drug demand. These regulations will impose new requirements for the conduct of international sales by private sector providers. These requirements will make it difficult for firms to meet local demand for their drugs in the developing world; this will significantly increase the cost of obtaining drugs for patients. Similarly, regulations would require that firms have more information about the cost of drugs in foreign countries than FDA regulations can reasonably be expected to result in the public price for these drugs. Finally, FDA regulations on the supply of drugs are very sensitive to a country's currency policies. We find no credible evidence that any of the drugs in question were sold to the public at Prozac buy canada prices lower than those available internationally. This brings us to the third aspect of situation—not specific cost the new drugs in question but rather the likely effect on market–based demand for the drugs. In considering a new drug, it is crucial to understand the market in which drug is being sold. FDA's position would reduce the production of these products and therefore the supply of market. In addition to these effects, the price of new products will most likely increase the cost of drug costs to US citizens and businesses. The only hope of limiting effects increasing drug costs is through regulatory or political means. Finally, we note that even these new drugs will have their full effect only as long the world market for these products is not distorted by the existence of a monopoly. If the international production and demand for these drugs is distorted by a national or other monopsony of production and/or by the absence of any market intervention to reduce the price of this drug, then their expected effects will be materially diminished. The Importance of Role for Government What should be the role of government in regulation drug prices? The issue is at least as interesting the question how much price of a drug should be regulated. The former is what US government should do but the latter is what private companies will most likely do and, as for most aspects of business in this economic environment, the market forces will best accomplish the goal to satisfaction of all. Some private companies will undoubtedly be willing to undertake the task of controlling drug pricing. At a minimum, private companies can develop more and efficient information distribution systems to inform consumers of drug price variations. And they can offer incentives to suppliers encourage them respond consumer demand. Such private solutions to the problem of drug pricing, while not an ideal solution, are much more efficient than government–mandated price controls. In the absence of a new drug, however, such private solutions will lead to the same result as if FDA had decided to impose a cost ceiling rather than price.

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