Analysis of the Online Prescription Drug Market

Analysis of the Online Prescription Drug Market

Introduction

This essay will address the recent trends and developments in the online consumer prescription industry, specifically in the digital market.

Methodology

This essay draws on studies by Doran (2016), Kim (2015) and Southwell et al (2016), which discuss recent trends, issues and challenges in the online consumer prescription industry. This essay also draws on case studies primarily in the United States, which has a robust but troubled prescription industry regulated by the FDA, and other countries with more lax drug and consumer market regulation regimes, such as China and India.

Need an essay assistance?

Our professional writers are here to help you.

PLACE AN ORDER

The studies collectively show that the main trends in the online consumer prescription industry are drug affordability, drug approvals, product labelling, misleading advertisements, information asymmetry, incentive misalignment and security issues.

Foremost, the online consumer prescription industry has shown the potential of being a major source of drug affordability for many patients. Many of these online consumer prescription drug companies use generic brand drugs and other copycat drugs, often where the IP and patents owned by major drug companies have expired, to manufacture affordable drugs for the average consumer. This has the effect of increasing competition within the prescription drug industry, and making drug prices more affordable for the average consumer. This is a major development for the healthcare ecosystem on the whole, given that reports suggest that the online consumer prescription drug industry is expected to grow to around 128 billion USD by 2023, more than fourfold of its market valuation of 29 billion USD in 2014.

Secondly, drug approvals have continued to be a major issue in the online consumer prescription industry. The FDA has, to date, maintain a strong regulatory regime for drug trials and drug licensing in the United States. However, as the online consumer prescription industry has grown, the global pharmaceutical market has continued to grow in complexity, outstripping the FDA’s capability in regulating and approving drugs. As a result, many drugs that eventually make it to U.S. consumers are not FDA-approved, and have not been certified for their safety and effectiveness by the FDA, which is dangerous for consumers. One such example is netmeds.com, an online pharmacy business run out of India by Pradeep Dadha, who operates in a regulatory zone that does not receive FDA approval, and is not subject to proper FDA oversight. (Fittler et al, 2018) Despite active consultations with the government, Indian online consumer prescription industry players such as 1mg, PharmEasy and Myra remain unable to secure the appropriate drug approval oversight necessary to be seen as appropriate players in the pharmaceutical industry. This has also been a major issue for these online consumer prescription drug companies, as up to 45 to 50% of their orders are rejected due to poor approval and invalid prescriptions. (Fittler et al, 2018)

Product labelling has also emerged as a major issue in the online consumer perception industry. Several third-party pharmaceutical product suppliers continue to mislabel their products, or do not label them in accordance with internationally recognized standards such as those of the FDA or the EU. Still others provide labels with incorrect expiry dates, ingredients and usage instructions, which may prove harmful or even fatal to the consumer. (Kim, 2015) Even in cases where the drug is legitimate, in an increasingly globalized world, what may be legal in one country may not fulfil the drug regulatory requirements of another country. Hence, product labelling in the online consumer prescription industry still has a long way to go. (Doran, 2016)

Misleading advertising has also been a major issue in the online consumer prescription industry. As the potential for digital marketing to reach and connect with targeted audiences has increased, so too has the potential for the online consumer prescription industry to reach better targeted audiences to position and market their products effectively. (Kim, 2015) However, these advertisements often come with unverified claims as to the clinical potential of their products (such as an X% reduction in hypertension or a Y% rate of success against diabetes), or often come without advisory warnings for patients with existing pre-conditions that may render them unsuitable for the administration of said drug. Still other online consumer prescription companies rely on sensationalist claims, such as sex organ enlargements or infertility cures, as a way to draw in customers, without adequately backing up their advertising clai