Drugmakers Explore Response to Pricing Debate
Turing Pharmaceutical's decision to raise the price of a drug by 5,000% not only sparked intense questions about the rationale for high prices on new and old medicines.
Kenneth Frazier noted that Turing did not invest in additional research and development or meed any net unmet patient needs when it raised the price of antiparasitic Daraprim from $13.50 per pill to $750.
The controversial move by the private drugmaker, and by its now-infamous CEO, also prompted other companies to distinguish themselves by more firmly justifying how they price their medicines. In light of the Turing price hike, all drugmakers are under increased scrutiny to defend and explain their drug pricing practices. Other highly publicized pricing decisions are Valeant's repricing of heart drugs Nitrpress adn Isuprel and Gilead Sciences' decision in 2013 to price its hepatitis C cure Sovaldi at $84,000. Drugmakers and experts are now discussing the need for value-based pricing, indication-based pricing, and risk-sharing agreements as solutions.
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