Major Pharmaceutical Companies come ahead to Explain Price Hikes

Published By : 18 Jan 2016 | Published By : QYRESEARCH

As major pharma companies in the U.S. continue to face backlashes over the rising prices of a number of highly popular life-saving drugs, these companies have started pushing back the criticism by pointing out that most people do not pay the retail prices of the medicines. Thus, the rising focus on the list prices or retail prices of these drugs, which are actually seeing the high rise in prices, is misplaced.

Top executives from pharmaceutical giants such as Merck & Co., Eli Lilly and Co., and Biogen Inc. are stressing the point that the actual price paid by many consumers such as insurers, benefit managers, and large buyers are greatly reduced through discounts.

While a couple of intense price hikes in certain medicines in 2015 effortlessly called attention of the entire world to the issue of costs of medicines. As Turing Pharmaceuticals raised the price of Daraprim, a generic life-saving medicine, of almost by 5000%, the pharma giant Valeant Pharmaceuticals International also announced the price hike of the heart medicine Isuprel by as much as 200%.

These cases were quickly described by the largest pharmaceutical companies as outliers. But the industry practice of increasing medicine prices every year, for highly popular medicines and for the treatments that are used by millions of people, is now attracting renewed attention.

Analysts state that the pharmaceutical industry needs to explain the value of medicines in a better way and need to show how price hikes of medicines would not have a significant effect on healthcare costs on a larger scale. In essence, it needs to be shown to the public how list price and net price of medicines is different.

Eli Lilly has said that the actual average price rise in its injectable insulin drug Humalog, used for treating diabetes, has been a meagre 1-2% every year over the past five years.

Horizon Pharma plc., a small pharmaceutical company, has increased the prices of drugs at an average of 7% this year.

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