05-12-2017, 05:03 PM
Drug pricing has become a key priority for President Trump. And it’s no surprise why.
Some drugs for cancer carry a price tag of over $100,000 per year with a big portion of costs falling on patients themselves. And drugs for rare diseases—made by companies like Alexion (ALXN) and Biomarin (BMRN)—can cost upwards of $500,000 per year.
The last year or two included major controversies over drug prices, including the price of Mylan’s (MYL) Epipen allergy treatment, which rose 500% from 2009 to 2016 before it introduced a lower-priced generic option. Before that, Martin Shkreli’s Turing Pharmaceuticals drew criticism for raising the price of an anti-parasite drug by 5,500%. And beleaguered Valeant (VRX), which grew from a controversial acquisition strategy, came under fire for price hikes, including jacking up the price of two heart drugs by more than 500% and 200% after acquiring the rights to sell them.
These companies became the poster children for greed in the pharma space, bringing the sector’s drug-pricing practices into public view.
Prescription drug prices rose 6.2% in 2016, according to the pricing data provided by the Bureau of Labor Statistics. That’s about three times the overall rate of inflation. And many consumers without insurance face stratospheric costs if they need life-saving, brand-name drugs where there is no generic available.
https://www.yahoo.com/finance/news/presc...59672.html
Some drugs for cancer carry a price tag of over $100,000 per year with a big portion of costs falling on patients themselves. And drugs for rare diseases—made by companies like Alexion (ALXN) and Biomarin (BMRN)—can cost upwards of $500,000 per year.
The last year or two included major controversies over drug prices, including the price of Mylan’s (MYL) Epipen allergy treatment, which rose 500% from 2009 to 2016 before it introduced a lower-priced generic option. Before that, Martin Shkreli’s Turing Pharmaceuticals drew criticism for raising the price of an anti-parasite drug by 5,500%. And beleaguered Valeant (VRX), which grew from a controversial acquisition strategy, came under fire for price hikes, including jacking up the price of two heart drugs by more than 500% and 200% after acquiring the rights to sell them.
These companies became the poster children for greed in the pharma space, bringing the sector’s drug-pricing practices into public view.
Prescription drug prices rose 6.2% in 2016, according to the pricing data provided by the Bureau of Labor Statistics. That’s about three times the overall rate of inflation. And many consumers without insurance face stratospheric costs if they need life-saving, brand-name drugs where there is no generic available.
https://www.yahoo.com/finance/news/presc...59672.html
