Two Pieces of Advice to Pharma on How to Price Drugs By Everett Neville

The biopharmaceutical sector has faced difficulties in recent years, as large and small companies are facing growing criticism over the prices of branded pharmaceuticals.When asked about rising drug prices, Everett Neville, Vice President and the Chief Trade Relations Officer of Express Scripts gives two pieces of advice to Pharma on how to price their drugs.First of all, what is the value of the drug? The problem with this is, we are never going to agree. In the recent years manufacturers have put a really good faith in attempt to figure out the value of their drugs, but the industry has got to come to some understandings of how they price drugs.Secondly, what does it cost to continue research? Well, they say is it getting up to close to three billion dollars. I ’m not sure I believe that but the number is still substantial, just north of a billion to bring a drug to market undoubtedly. The problem with that is using it as a justification. Give everybody a 100% raise this year at your companies, raise those prices to six billion and double your drug price s. That doesn’t make any sense, right? The car industry doesn’t do that, the food industry, Starbucks doesn’t do that. They don’t just quadruple their cost and then pass on their prices. That’s not a rational way to price. You do need to price in such a way that the industry survives, but there should be some pressure to be more efficient. And you’ve gotten more efficient. You’ve got a computer screening on ...
Source: ePharma Summit - Category: Pharmaceuticals Tags: Big Pharma drug prices drug pricing drugs Healthcare healthcare cost medication pharma strategy PSA treatment Source Type: blogs