Zeroing Out Drug Prices

As we head toward the end of the year, biopharmaceutical companies are announcing their pricing strategies for 2019.

Merck & Co. raised the list price of five drugs, including its blockbuster cancer treatment Keytruda, in November — raising the price of Keytruda by 1.5 percent and its human papillomavirus vaccine Gardasil by about 6 percent. The other three treatments that saw increases were vaccines. According to Merck, the average net price of their drugs declined 1.9 percent in 2017.

Under pressure from President Donald Trump, many drugmakers, including Pfizer, Roche and Novartis, agreed to freeze price hikes until the end of 2018. Pfizer’s announcement is particularly detailed and instructive. Here’s the headline of the company’s press release:

“Pfizer Provides Transparency on Drug Prices in the U.S. 90% of Company’s Prices Will Remain Unchanged”

When you separate the spin from the substance, here’s what the headline should be:

“Pfizer adjusts 2019 prices in order to achieve 0 percent net revenue growth”

That’s the truth — but it’s not likely to be reported (or tweeted by a certain someone) that way.

Here are the facts.



 
Sign Up for Our Email Newsletter

RECENT NEWS

Biosimilar Strength vs. Potency: Avoiding a Regulatory Hobson’s Choice

Biosimilar Strength vs. Potency: Avoiding a Regulatory Hobson’s Choice

Biosimilars bring lower costs and greater access to the market for biological products, but FDA must determine a predicta...  Read more

FDA  Authorizes Pfizer Covid-19 Vaccine Booster for Ages 12-15
  • NEWSY
  • 01/04/2022 12:00 AM

FDA Authorizes Pfizer Covid-19 Vaccine Booster for Ages 12-15

CMPI's Peter Pitts discusses FDA approval of Pfizer COVID vaccine booster for children ages 12-15...  Read more

Should We Rethink The FDA Commissionership?

Should We Rethink The FDA Commissionership?

When one considers the FDA’s mission—to independently protect consumers and advance the public health—it is not at all cl...  Read more

DRUGWONKS BLOG