Posts Tagged price
Mylan is the company that makes EpiPen(R). It was one of those “inversion” companies that started in the US but is incorporated in the Netherlands to avoid taxes. Yet, the administrative offices are in Pennsylvanian in the US. It sells EpiPen(R) all over the world. In Australia a subsidiary called AlphaPharm sells the product. It’s a handy plastic syringe device that allows a person with a severe allergic reaction to grab the device and give an injection quickly.
It’s so handy that the company can sell the $1 device containing 3 cents of epinephrine for $697. That’s the price quoted by Costco. The same drug can be purchased online through Canadadrugs.com for $112.71 and through Kiwidrug.com for $122.51.
It’s not clear why other companies that package injectable drugs don’t supply prefilled syringes for this purpose — probably a very aggressive legal department or the acquisition of competing suppliers. The device is not something novel — it’s just a syringe — so it should never have received a patent.
Emergency Rooms and doctor’s offices don’t fool around with the EpiPen(R). They just purchase cheap vials of epinephrine and cheap syringes to give the dose for a few dollars. A patient could do this with a little training — it would save a lot of money. The cost of an EpiPen(R) so high the people who need the medication don’t buy it — so the few seconds a patient might take to draw up the medication in a syringe is better than no medication at all.
The Mylan company is a good example of why drug companies should be more regulated and have profits limited.
Mylan purchased the decades old EpiPen(R) rights from Merck in 2007. The consumer price in 2007 was about $60. With a major marketing effort (basically convincing patients, schools and healthcare facilities to always have the product available) the price is now about $700 accounting for about 50% of company profits. Teva Pharmaceuticals is working on a generic epinephrine injector but it probably will not be available until 2018. A startup company Windgap Medical has invented a device using powdered epinephrine but it may be many years, if ever, before the device arrives on the market — but, the device promises to extend the shelf life from 18 months (for the EpiPen) to several years.
Here are some good references about EpiPen(R) and Mylan
There is a perfectly acceptable (FDA approved) alternative to EpiPen in the form a competing product called Adrenaclick which costs only about $140 (according to GoodRx) for a two pack. This product does little advertising — certainly not as much as EpiPen. But, advertising does not equate to product superiority. To get the less expensive product:
- If the prescriber wrote a prescription in a generic format (Epinephrine auto-injector 0.3 mg (or 0.15 mg) for injection in case of allergic emergency) then a patient should simply call the pharmacy to obtain the lower cost alternative.
- If the prescriber wrote the prescription for the easy-to-remember brand name a patient should simply call the prescriber’s office and ask that a replacement prescription be sent to the pharmacy for the Adrenoclick in the same dose as for the EpiPen.
- The two devices are not exactly the same but the technique is very similar. The patient should read the directions very carefully to understand the small differences — read this when the medication arrives, not when an emergency is present. The pharmacist is required to provide personal instructions and answer questions about products they sell.
Although the Adrenoclick is less expensive it is still much too expensive. The manufacturing price is probably less than $10 each. Also, keep in mind the shelf life — liquid epinephrine only has a shelf life of 18 months — so even if the medication is not used there is a recurring cost for replacement.
Asthmatic abuse: (definition) The systematic and intentional market manipulation of asthma medication prices resulting in large corporate profits and financial ruin for people with asthma (see also: racketeering, theft, extortion, corruption, complicity and congress).
Price gouging of people with asthma by U.S. pharmaceutical companies is legendary (New York Times). Now some of those same companies want to move their corporate offices to other countries to avoid U.S. taxes. RIPOFF is the technical term.
An inhaler is a pressurized gadget to make a mist of a medication so a person can inhale the mist (see the picture at the right). It should have never been patented: it is useful, but it is trivial and certainly not novel. Now, through patent manipulations and suits there are NO GENERIC INHALERS FOR ASTHMATICS; there are only high priced brand name products — despite the fact this type of sprayer and medication has been available for 40 years.
Albuterol is the most common anti-asthma inhaler. The drug is easy to manufacture (costs a few cents) and the inhaler is trivial (costs less than a dollar). The US price listed below is from Costco (considered the lowest price source in the US). The Indian price quoted below is from allmedsdeal.com (this is not an endorsement, just an example).
- The US price: PROAIR HFA 90 MCG INHALER (TEV) $55.46
- The Indian price: Ventorlin CFC Free Inhaler / Salbutamol 100mcg (GSK) $4.40
These are the same drugs: US price $55, Indian price $4. GSK is a reputable UK company that manufactures albuterol, sells it worldwide, but not in the US. Without the unreasonable market restrictions and nearly insane FDA rules asthmatics would be able to purchase albuterol for about $4 per inhaler.
Patents should be allowed to exist, but consumer prices must be limited. Countries other than the US exercise this control. Citizens fight price-gouging companies — why not fight price-gouging drug companies? Medicare insists doctors accept payment at the lowest rate offered, so why should Medicare fail to insist on the lowest price drug companies offer elsewhere in the world?
The current laws for pharmaceuticals are so complicated it defies understanding. If you like complexity, like laws and like legal suits then continue the current system. Instead, consider the following:
What part of this simple rule would be difficult to understand:
THE RETAIL PRICE OF ALBUTEROL INHALER SHALL BE $4.
That’s the kind of pharmaceutical control the US needs.