BMJ letter: 'Another loophole exploited by the drug industry

Source: BMJ Area: News The author of this letter praises a recent analysis of the methods used by drug companies to maximise profits, but comments that a new tactic was omitted. This tactic exploits a loophole whereby the Department of Health is not involved in negotiations about the price of generic drugs, as these are usually driven down by market forces.   In September 2012 Pfizer sold the marketing rights of Epanutin® (phenytoin) to Flynn Pharma. Although the drug is identical (right down to the Epanutin stamp on the capsules), it is packaged under a different name and therefore can be described as generic. The lifting of previous price controls resulted in over a 23-fold increase in the price - from 66p to over £15 for 28 capsules. There is no generic market for phenytoin; even if there was doctors would not switch to an alternative because of the risk of destabilising a patient's epilepsy.   The author of the letter comments that "exploitation of this loophole has cost the NHS ...
Source: NeLM - News - Category: Drugs & Pharmacology Source Type: news