PRICING, PRICING, PRICING! A recent International Federation of Health Plans report shows that drug prices in the U.S. are up to 10 times higher than the same drugs purchased in other market economies. Our industry currently prices products to build in not only repayment for the product R&D itself in the shortest possible time but also to recompense for all R&D and failures. That model will not sustain itself much longer. Outrage at the 5,000-fold increase in price for an old generic toxoplasmosis drug by Turing flooded social media. There is a brewing backlash by politicians and payers alike to cap prices of important drugs that address medical needs of the country. We need to rethink our business model to address the now-serious challenges to off-the-charts pricing of biopharmaceuticals in the U.S., or others will rethink it for us.
CAROL NACY, PH.D.
CEO of Sequella, Inc., a private company that develops new anti-infective drugs. She was formerly CSO at Anergen and EVP/CSO at EntreMed