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| Press Release

Frank Magliochetti - Discusses the Rising Costs of Prescription Drugs in 2017

LAWRENCE, MA / ACCESSWIRE / October 11, 2017 / The business of big pharma has many astounded nationwide at the soaring prices of prescription medication. Even after accounting for all the rebates and discounts provided by drug makers, costs are on an upsurge. Healthcare and finance expert, Frank Magliochetti, shares his thoughts on the increasing expenditure and the ethics of the current marketplace.

Prescription drug charges in the U.S. are among the highest in the world, with 72% of Americans deeming the expenses incurred from medication "unreasonable". Now with the future of healthcare reform up in the air, consumers could be looking at taking a big step back in terms of affordability and access to care. Prices continue to rise faster than either cost of living or wages, affecting many household budgets. The cost of prescriptions increased by 11.3% from 2016 to 2017; by comparison, real average hourly earnings only increased by 0.6% from August 2016 to August 2017 according to the U.S. Department of Labor.

Buyers are spending over $450 billion annually to treat conditions such as high blood pressure, high cholesterol, diabetes, and more recently, hepatitis C, multiple sclerosis, and several cancers. Though these medicines are successfully treating people and increasing life spans, they are also affecting lifestyles: 40% of people couldn't manage payments and asked their doctor or pharmacist for a cheaper alternative, while 19% of consumers skipped medication for extended periods of time or lowered their dosage without consulting their doctor. "Prices for popular brand name drugs rose 208% from 2008 to 2016. People can't afford it anymore and it's limiting their access to important medicines," says Frank Magliochetti.

Older drugs aren't immune to the changes; the 40-year-old lifesaving allergy medication, EpiPen, increased their charges by 500% in the last ten years, while insulin has tripled in costs from 2002 to 2013 with no notable changes to the manufacturing process or the formula. The industry is defending the high numbers by pointing out that development averages at ten years and costs over $2.5 billion dollars to perfect; even after a product is approved and introduced to the market, research on advancing it continues. Though this may be true initially, the real reason for the continuous increase is that there is nothing stopping the drug companies from charging the highest amount the market will bear. The US basically allows them to set their own prices and it's a simple case of supply and demand; the more people need it, the more it costs. Manufacturers hold 20-year-long patent rights which give them monopoly on the drug and even after the patent expires, many simply seek approval for a "new" product with slight variations from the original. As long as a company maintains its monopoly, it's free to raise the price as frequently, and as high, as they see fit.

Frank Magliochetti's expertise in both the pharmaceutical industry and finance comes from his educational background and experience. Having obtained a B.S. in Pharmacy and then a Masters of Toxicology from Northeastern University, Frank went on to receive his MBA in corporate finance from The Sawyer School of Business at Suffolk University. He then founded a pharmacy chain which he eventually sold and moved on to hold senior positions at Kontron Instruments, Baxter International, Sandoz Pharma, and the Haemonetics Corporation. He is now a managing partner at Parcae Capital where he restructures and revitalizes companies in the healthcare industry as well as alternative energy and media.

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SOURCE: Frank Magliochetti