The market for painkillers is huge. People don’t like pain and inflammation, and last year Americans spent nearly $4 billion on just two of them – Vioxx and Bextra. Those two drugs, part of a family of non-steroidal anti-inflammatory drugs known as COX-2 inhibitors, were withdrawn from the market recently amid concerns that they can cause heart attacks and strokes. The loss of these two drugs to the marketplace is huge, as they were the two largest sellers in a fairly narrow field. COX-2 inhibitors differ from traditional non-steroidal anti-inflammatory drugs in that they inhibit production of the COX-2 enzyme that causes inflammation but do not interfere with COX-1, the enzyme that protects the stomach lining. Patients who use these drugs are thought to suffer less from internal discomfort and bleeding than those who took traditional anti-inflammatories, such as naproxen and ibuprofen.
With the withdrawal of these two blockbusters, patients with chronic pain, such as arthritis sufferers, are now going back to older painkillers, such as Mobic, Motrin, and Relafen. Since the more popular Vioxx and Bextra are no longer available, these older drugs are enjoying a resurgence in popularity, and sales are up across the board. So, it seems, are their prices. A recent study by a popular consumer publication shows that prices of some three dozen anti-inflammatory medications have gone up since Vioxx was withdrawn from the market in September 2004. The increases average about ten percent. Why have the prices of these older, established medications all gone up at once?
The answer, simply, is that the pharmaceutical companies have raised the prices because they can. The market for drugs is wildly competitive, and manufacturers are constantly seeking any advantage they can find in the marketplace. The sudden withdrawal of two of the most popular and profitable medications has provided a rare opportunity for manufacturers to increase both sales and prices at the same time, as the drug makers know that patients must switch to another medication. It’s good for their stockholders, but bad for those who suffer from pain.
Will the high prices last? Probably not. Pricing of highly competitive medications tends to be volatile. The prices may stay up in the short term, but other medications may be introduced soon, or Bextra or Vioxx may be returned to the market. The introduction of other drugs will restore more competition to the market, and prices may drop once again. The market for painkilling drugs is a bit of a crazy one, and patients should simply exhibit some, well, patience.
Home Loans – Identity Theft Protection Could Hurt Home Sales
Identity theft has been a hot topic in the news during the last few years. Just a month or so ago, forty million credit card numbers were compromised due to a computer attack on a credit card processor. Consumers are rightly concerned, as it can take years to unravel the problems created when someone’s identity is stolen. New legislation in Texas and California, also proposed elsewhere, is designed to protect consumers by letting them put a “freeze” on their credit reports. Those in the real estate industry are worried, however, that doing so may make it difficult for some people to buy homes.
Debt Consolidation – How to Protect Your Credit Accounts from Theft
Last week, a security exploit at CardSystems Solutions, Inc, a credit card processor, may have allowed thieves to obtain as many as 40 million credit card numbers from unsuspecting victims. The theft was brought about though a virus introduced into the CardSystems that allowed external hackers to obtain access to the account information. Adding to the problem was the fact that CardSystems wasn’t supposed to have the account information at all. It appears that CardSystems “inappropriately” held onto the information after clearing the credit card transactions. At that point, the account information should have been deleted. CardSystems held onto the account information for supposed “research purposes.” Fortunately for those involved, the compromised information only included account numbers and not Social Security numbers, which would have assisted the thieves in identity theft scams. This latest security breach at a credit card processor outlines how anyone can be vulnerable to account or even identity theft. Is there anything that can be done about it?
New Bankruptcy Law – Targeting the Wrong People?
Last April, President Bush enthusiastically signed into law the oddly-named Bankruptcy Abuse and Consumer Protection Act. This bill, representing the biggest overhaul of bankruptcy law in twenty-five years, was written in order to discourage “bankruptcy of convenience.” Proponents of the bill, which included the credit card industry, say that the bill is necessary in order to stop an avalanche of bankruptcy filings by drug users and compulsive shoppers and gamblers. The law makes it harder to have debts wiped away, requires credit counseling for those considering bankruptcy, and holds attorneys responsible for paperwork errors by their clients in bankruptcy cases. The net result will probably be chaos, as fewer attorneys will handle bankruptcy cases, credit counselors will raise their fees, and more consumers with problem debt will be clueless as to what they should do next. Adding to the confusion are some new statistics that suggest that a large number of bankruptcies that are thought to be personal are actually business bankruptcies. As a result, the new law may be unfairly targeting consumers for punishment when they are not actually the biggest part of the problem. Worse, it could be harming small businesses.
