A recent article at Bloomberg revealed that Regeneron Pharmaceuticals, Sanofi, and Roche Holdings AG had announced they would reduce prices on specific drugs following political and public criticism and battling over medication prices in the U.S. over the past two years. Some weighing in on the issue include Real Endpoints CEO, Roger Longman, who says that drug makers are “waking up to a new reality” when it comes to how to value drugs.
Roche announced at the end of March it would lower the price for its multiple sclerosis drug to a level that’s reportedly 25% less than a competitor’s drug. The price for the new MS drug at the time of the announcement was $65,000. An atopic dermatitis treatment that is new on the market would be priced at $37,000 annually by Regeneron Pharmaceuticals and Sanofi, compared to the $50,000 per year price tag on older drugs used for treatment of the skin condition, which is said to be painful and debilitating. Both said they had engaged in lengthy conversations with insurers in an effort to avoid additional disputes regarding drug pricing.
Over the last couple of years drug makers have been fighting over the costs of U.S. medications. Pricing has become more complex as pharmaceutical companies have come under fire from all sides, many offering rebates and obscure discounts in an effort to compensate for the rapidly increasing up-front prices.
Longman said that, in the past, price wasn’t a factor as doctors would prescribe the drug they were convinced was better than another; however, today the decision has shifted to employers and insurance companies, those who shoulder a significant portion of costs of medications. Pharmacy benefit managers and insurers have forced price wars between drug makers, or restricted access to certain drugs to patients who are the most ill, flexing their muscles while at the same time helping to trigger political intervention.
At REA JET we are a trusted supplier of coding and marking systems for the pharmaceutical industry. We understand the complex needs of drug makers, and deliver exceptional marking solutions that integrate easily into your existing production lines. Trust REA JET for all of your industrial coding needs.