Federal regulators may finally step in an take a real stance against the pharmaceutical industry’s rampant price-gouging.

Pharmaceutical companies have been notoriously price-gouging. The recent scandal centered around the ridiculously inflated cost of Daraprim showed how carelessly pricing is regulated.

Many have been left wondering if federal lawmakers will take action against the high price of life-preserving medications.

Putting Price-Gouging In the Spotlight

Pharmaceutical companies have created a pattern of acquiring the rights to certain drugs and then raising the cost.
Image: Buzzsaw Mag

Drug prices have been steadily increasing throughout the past decade. The first big hit was when Gilead Sciences priced the hepatitis C treatment Sovaldi at $84,000.

The high price of prescription medication received a renewed wave of attention when Turing Pharmaceuticals raised the price of Daraprim, an antiparasitic drug that protects seriously ill patients with weakened immune systems.  CEO Martin Shkreli made the decision to raise the toxoplasmosis treatment from $13.50 to $750 a pill.

Although he rescinded his original announcement, media broadcasters publicized widespread outrage from politicians, health professionals and patients.

Canadian drugmaker Valeant Pharmaceuticals International added fuel to the fire by raising the price of two heart medications, Nitropress and Isuprel, by 525% and 212% respectively. Many of these companies have started a pattern of acquiring the rights to sell a certain drug before raising the price a few hundred times.

On top of that, Citron Research accused Valeant of conspiring with specialty pharmacies Philidor Rx Services and R&O Pharmacy in a plan to generate phony sales.

The report sheds light on a stark jump in drug costs for both new breakthrough medications and older generics.

How To Combat The Increase

Patients protest Congress to fight Big Pharma’s standard of high pricing.
Image: US News

John Rother, CEO of the National Coalition on Health Care, has been working on a campaign to lower drug prices.

After the high price of Sovaldi and others brought attention to price-gouging, many politicians have begun to highlight the problem in their political campaigns.

“For lawmakers who are concerned about our fiscal standing, this is going to be an ever-more central issue,” Rother said.

According to a Health Affairs article, drug costs had increased 12.6% in 2014. While some are calling on regulators to step in, others believe that government interventions could have additional consequences.

“I’m very worried that on the pricing side, policymakers could be clumsy in trying to fix something and maybe make other problems,” Chip Kahn, Federation of American Hospitals CEO, said.

Both Democrats and Republicans have planned to address the issue in their platforms. Presidential candidates Hillary Rodham Clinton, Bernie Sanders and Marco Rubio are condemning the current system that allows drug companies to set their own prices.

Under Sanders and Clinton’s health care reform, Medicare would be given the ability to negotiate with drug companies to set prices. Patients would also be allowed to access to cheaper drugs from foreign providers.

Independent Health’s director of pharmacy services Sheila Arquette believes regulators will take action upon realizing that the current price of drugs makes health maintenance unsustainable.

Arquette recommends that drugmakers and insurers work together to find solutions, in addition to being more transparent about research and development costs.

“We have to be transparent, because I don’t think any of us really understand the whole picture,” Arquette said. “We need the manufacturers to come to the table and just be honest with us.”

The post Will Federal Regulators Take Action Against Pharmaceutical Price-Gouging? appeared first on Citizens Report.

A specialty drug company called Imprimis Pharmaceuticals has responded to the price-gouging of Daraprim by creating a cheaper alternative.

Turing Pharmaceuticals purchased the rights to the parasite-fighting drug Daraprim in August and raised the price to $750 per pill. Both media and medicine were outraged, sparking a full-on protest that condemned the company’s CEO Martin Shkreli.

Shkreli agreed to lower the price, but that didn’t stop specialty drug manufacturer Imprimis Pharmaceuticals from creating an immensely cheaper alternative.

A Comparable Product With Added Benefits

The compound created by Imprimis Pharmaceuticals has added benefits that will blow Daraprim out of the spotlight.
Image: Hispanics News Network

Daraprim, also known by its generic name pyrimethamine, has existed since 1953. It is used to treat parasitic infections that prey on patients with weakened immune systems, such as those with cancer and HIV/AIDS. These patients are more likely to develop a condition called toxoplasmosis, which causes muscle pain, fever and headaches.

Imprimis Pharmaceuticals, located in San Diego, plans to make a comparable version of the medication for $1 a pill. That’s $749 less than Turing planned to charge. The alternative version would also include a chemical called leucovorin.

“According to the Centers for Disease Control and Prevention, pyrimethamine works to block folic acid synthesis in the parasite T. gondii, the cause of toxoplasmosis, and leucovorin helps to reverse the negative effects on bone marrow caused by this mechanism of action,” the company said.

The drug has changed hands a number of times. Daraprim was originally manufactured by GlaxoSmithKline for about $1 a tablet, and then Impax Laboratories for $13.50 a tablet. Turing bought the drug in August for $55 million and raised the price to $750 per pill.

However, the most recent version of the drug has added benefits from the leucovorin. This version will be sold at a price that is closer to the original cost.

“Imprimis is now offering customizable compounded formulations of pyrimethamine and leucovorin in oral capsules starting as low as $99.00 for a 100 count bottle, or at a cost of under a dollar per capsule. Compounded medications may be appropriate for prescription when a commercially-available medicine does not meet the specific needs of a patient,” the company said.

The Importance Of Access

A new program called Imprimis Cares works to make necessary drugs affordable for the general public.
Image: Our Health

It seems likely that there won’t be much competition when deciding where to purchase the antiparasitic compound.

If Turing were to monopolize the drug, it would cost about $336,000 a year to treat someone with toxoplasmosis, according to the Infectious Diseases Society of America and the HIV Medicine Association.

“While we respect Turing’s right to charge patients and insurance companies whatever it believes is appropriate, there may be more cost-effective compounded options for medications, such as Daraprim, for patients, physicians, insurance companies and pharmacy benefit managers to consider,” Imprimis CEO Mark Baum said in a statement.

“This is not the first time a sole supply generic drug — especially one that has been approved for use as long as Daraprim — has had its price increased suddenly and to a level that may make it unaffordable,” Baum said.

“In response to this recent case and others that we will soon identify, Imprimis is forming a new program called Imprimis Cares which is aligned to our corporate mission of making novel and customizable medicines available to physicians and patients today at accessible prices,” Baum said.

The post Specialty Manufacturer Offers $1 Alternative To Turing’s High-Priced Antiparasitic appeared first on Citizens Report.

Turing Pharmaceuticals raised the price of a life-saving drug more than 55 times the original cost. The price-gouging has caused a serious media and medical outcry.

The high cost of pharmaceuticals is a widespread issue in the United States. Pharmaceutical price-gouging is something that presidential candidates are trying to combat, but the seriousness of the problem wasn’t as clear until the cost of a life-saving drug was raised by 5500 percent.

Turing Pharmaceuticals of New York acquired the rights to Daraprim, a drug that treats infection from a common parasite. After buying Daraprim from Impax Laboratories, Turing increased the cost of the drug from $13.50 per pill to $750 per pill.

A Life-Saving Drug

Daraprim is on the World Health Organization’s List of Essential Medicines, which means that it is a necessity in a basic health system.
Image: Share Tu

Daraprim, also known as pyrimethamine, has been on the market since 1953. It is an antiparasitic compound that treats protozoal infections such as malaria and toxoplasmosis.

While malaria is almost unheard of in the United States, toxoplasmosis is a frequent cause of illness. Toxoplasmosis, the most common food-borne disease, attacks a weakened immune system. The condition is life-threatening and has the potential to kill patients whose natural defense mechanisms have been weakened from cancer, HIV/AIDS and even pregnancy, according to the CDC.

About 60 million people in the United States may carry the toxoplasma parasite, according to the CDC. The parasite is spread from eating under-cooked meat, drinking unclean water and coming into contact with contaminated cutlery or infected feces.

The parasite can be passed to unborn children during pregnancy or through organ transplants. The flu-like symptoms may seem mild, but the parasite is deadly. It attacks the brain and can cause blindness and brain damage.

Outrage From The Medical Community

The HIV Medicine Association and the Infectious Diseases Society of America are two of the health organizations that have protested the price-gouging of Daraprim.
Image: Blogger

Doctors, patient and other health professionals are outraged by the rising cost of prescription drugs.

Turing Pharmaceuticals was contacted by the HIV Medicine Association and the Infectious Diseases Society of America to share concerns about the high cost. The pricey pill may not be stocked in hospitals if it the institution can’t afford to buy in bulk. But no alternative treatment is effective enough, which means that many patients won’t have access to the medication they need.

The cost increase makes the medication unaffordable, even for people with insurance. High-price drugs are categorized as “specialty” medications, and patients will pay hundreds or even thousands of dollars every year. Most insurance plans require patients to pay 20 percent of the drug cost, which would equate to $150 a pill.

“This is a tremendous increase,” said Judith Aberg, a spokesperson for the HIV Medicine Association.

In 2013, the average cost of medication increased by 13 percent, according to a report from the Prime Institute at the University of Minnesota. Cancer treatments now cost more than $100,000 a year. The brand-name hepatitis C drug, Sovaldi, costs $84,000 for a 12-week treatment.

“Every week, I’m learning about another drug that has increased in price because of a change in marketing or the distributor,” Aberg said.

CEO Set To Lower The Price

In response to the media outcry, Martin Shkreli, CEO of Turing Pharmaceuticals, plans to lower the price. The company hasn’t determined the amount. 
Image: The Guardian

Turing said the company is working with hospitals and providers to make the drug accessible through co-pay assistance programs and free-of-charge options for uninsured patients, according to Turing spokesman Craig Rothenberg.

Rothenberg said there is a purpose for the high price. The income will be used to research treatments for toxoplasmosis and invest in marketing and education to promote awareness about the disease. The goal is to develop a toxoplasmosis treatment with less side effects.

“There has been no innovation in dealing with toxoplasmosis,” Rothenberg said. “That has been a long neglect in the patient community.”

But after the medical community expressed their disdain for the price hike, Turing’s CEO Martin Shkreli has agreed to lower the cost by an unknown amount. The company paid $55 million for the rights to Daraprim, and Shkreli claims he’s just trying to get an adequate return on his investment.

“Yes it is absolutely a reaction — there were mistakes made with respect to helping people understand why we took this action, I think that it makes sense to lower the price in response to the anger that was felt by people,” Shkreli told NBC.

On Twitter, Shkreli said he would “set the record straight on misconceptions and announce some adjustments to our plan.” Despite the low production costs, the company still needs to finance “the quality control, the regulatory costs, and all of the other things that come with having a drug company.”

“We’ll know in several weeks how profitable the drug is, if it at all,” Shkreli said in an NBC interview. “It may turn out that’s it not even profitable at all, even at this price.”

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