The costs of various prescription drugs are dependent on a variety of factors. Just like other concepts in business, the pricing is based on the costs of production of the prescription drugs. By composition, a typical pill consists of excipients and the active components. The determination of the selling price will be done will respect to the overall production costs in a bid to ensure sustainable profits to the manufacturers. Additionally, the pricing will cover the costs associated with the branding and packaging of the drugs.

Ideally, the cost of a given drug is mostly analyzed on the net ingredient cost per given prescription.  This analysis will also cover the net discounts as well as the rebates by the manufacturers. On the other hand, the nature of the drug will be a key determinant of its overall cost. For instance, generic drugs are relatively cheaper than the original drugs. Brand name also affects the price of a given prescription drug.

Over the years, the cost of prescription drugs has been on the rise. Subsequently, this significant rise in the cost of pharmaceutical drugs is attributed to the rise in the ingredient costs of the drugs. In 2013, for instance, the net ingredient cost per prescription was about $58.99, which represented a rise of 2.2% from the previous year (Elliott, 2014). It is expected that the costs will rise over the years leading to the overall cost of medication that is detrimental to various developing countries.

As a remedial measure to the rise in the cost of prescription drugs, the Pharmacy Benefit Management is primarily tasked with maintaining lower costs of production. For this reason, a variety of generic drugs was commissioned to act as substitutes to the original drugs. Additionally, these generic drugs were subjected to a variety of discounts aimed at making them more available to the patients.

In conclusion, the costs of the prescription drugs will be reduced through the establishment of low net costs as well as more updated tools for the production. Additionally, the promotion of generic use will enhance the availability of prescription drugs in the market.