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For the drug companies, these research duds are necessary cost of doing business. The drug makers argue, however, that prices for the one in five therapies that do make it to market must compensate for the costs associated with those that do not. Consequently, the successful drugs have higher prices...
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Advertising is another factor why prescription drugs prices are going up. Drug companies spend millions of dollars in advertising and promotion in order to influence treatment decisions. Physicians are bombarded by information aimed at convincing them that a particular drug is the best. Soon, these new treatments became the accepted standard practice...
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