In a tweet on Monday, President Donald Trump criticized Pfizer and other drug manufacturers, saying they “should be ashamed” that they have raised drug prices.
Yet drugmakers are not the only reason for the high cost of prescriptions in this country; several pieces of the supply chain contribute to the final price.
The Schaeffer Center for Health Policy and Economics at University of Southern California released a study last year analyzing the flow of funds through the entire drug distribution process.
Here’s a look at how $1 spent on prescription drugs is broken down, according to the Schaeffer Center study:
Manufacturers account for the largest chunk of every dollar spent on prescriptions, according to the study. They also maintain the healthiest margins of any player in the prescription drug industry, according to the Schaeffer Center:
But who and where are the big players in the business? Missouri is home to one of the biggest — Express Scripts, the St. Louis County-based pharmacy benefits manager that controls close to 30 percent of its market.
Of all the biggest companies at different steps in the prescription drug supply chain, only two — wholesalers McKesson and AmerisourceBergen — control a larger share of their market than Express Scripts does of its market.