Senate Finance Committee Releases Results of Investigation Into Gilead’s Pricing Strategy for Hepatitis-C Drugs

Discussion The Gilead example does not represent the life science community well, and highlights the need to put extra thought into the way drugs are priced. Gilead clearly was allowing marketing to drive the pricing ship and displayed what could be considered an almost reckless disregard for availability and affordability. Pharmaceutical companies can, and should, attempt to maximize their profit, but should consider doing so in a way that ensures availability and affordability for patients and payers alike. While there is no clear answer to the drug pricing dilemma we currently face, perhaps more thought and research should go into drug pricing – questions like: what did the drug cost to develop or obtain; why is the company charging the price they are charging; and how can the company make the drug available to patients in need are questions that should be asked and answered by companies before setting a market price for specific drugs. Pharmaceutical companies would not be able to remain in business if they gave their products away, but they should be part of the solution to make drugs and healthcare more affordable. Further, throughout the developed world, branded prescription drugs are typically cheaper than they are in the United States. The difference is that in most other countries, the government systems are the only large drug buyers; compared to in America, where our market is highly fragmented, with bill payers ranging from employers to insurance companies t...
Source: Policy and Medicine - Category: American Health Authors: Source Type: blogs