Senator Blasts ‘Outrageous’ Drug Costs Following Report On Skyrocketing Prices
“Can you imagine if you went to an auto dealership and last year’s exact model was being sold at a 20 percent markup, and then you went back the next year and it had happened again?” said Sen. Claire McCaskill (D-Mo.), the top-ranking Democrat on the Senate Homeland Security and Governmental Affairs Committee.
Stat:
Prices For Common Medicare Drugs Rose 12 Percent Annually, With A Caveat
The latest report to chronicle the rising cost of prescription medicines comes from a U.S. Senate committee that found prices for the 20 drugs most widely prescribed through Medicare Part D in 2015, on average, increased 12 percent each year between 2012 and 2017. Moreover, a dozen of the medicines saw price hikes of 50 percent of more during that time and six of the drugs experienced price increases of more than 100 percent. In one case, the weighted wholesale cost for one medicine — Nitrostat, which is used to prevent chest pain — rose by 477 percent. (Silverman, 3/26)
The Hill:
Report Shows Skyrocketing Costs For 20 Brand-Name Drugs
Twelve of those drugs saw their prices increase by more than 50 percent in the five-year period. Six of the 20 had prices increases of over 100 percent. In one case, the cost for a single drug increased by 477 percent over a five-year period. In addition, the report found that while prescriptions for top brand-name drugs dropped by 48 million, revenue increased by $8.5 billion over the last five years. “This report demonstrates that the pricing decisions made by these drug companies are outrageous,” McCaskill said in a statement. (Weixel, 3/26)
In other pharmaceutical news, GlaxoSmithKline is buying Novartis' stake in a joint health care venture —
The Associated Press:
Novartis Sells Joint Venture Stake To GSK For $13 Billion
Swiss pharmaceutical firm Novartis is selling its stake in a consumer health care joint venture with GlaxoSmithKline to the British company for $13 billion. The joint venture was formed in 2015 and Novartis holds a 36.5-percent stake. Novartis CEO Vas Narasimhan said in a statement Tuesday that it "is progressing well," but "the time is right for Novartis to divest a non-core asset at an attractive price." (3/27)
The Wall Street Journal:
GSK Buys Novartis’s Stake In Health-Care Unit For $13 Billion
The deal is the first significant strategic move for both companies’ young and newly installed chief executives, as they reposition their respective firms amid a series of other reviews and deal making across the industry. GSK Chief Executive Emma Walmsley, 48 years old, has moved to shake up the company’s drug-research efforts, reshuffling or letting go hundreds of executives and scientists since taking over about a year ago. That is part of an industry wide effort at several big pharmaceutical firms to refocus attention and resources on the high-risk, but high-reward business of discovering and bringing to market new drugs. (Allen, 3/27)
Bloomberg:
Novartis To Sell Stake In Joint Venture To Glaxo For $13 Billion
The new bosses of two of Europe’s largest drugmakers are pivoting in different directions, with GlaxoSmithKline Plc doubling down on consumer health as Novartis AG focuses on finding new prescription medicines. Glaxo Chief Executive Officer Emma Walmsley’s $13 billion deal for Novartis’s stake in a joint venture that includes Panadol pain relievers and Theraflu cold medicine comes only days after the U.K. company abandoned its pursuit of Pfizer Inc.’s consumer unit. The deal gives Novartis’s Vas Narasimhan more firepower for the Swiss giant’s drug business and acquisitions. (Paton, 3/27)
