If you thought the drug pricing debate looked big in 2016, wait for what 2017 has in store for you.
At JP Morgan earlier this month, Endpoints News gathered together some of the top industry players to discuss the latest news on pricing strategies as well as different perspectives on what it’s going to take to satisfy the growing public demand for price reforms.
This was just before President Trump lined up a broadside that would rattle every window in pharma.
Whatever direction this goes on Capitol Hill, it’s quite certain that the industry will no longer be allowed to quietly engineer steep and steady price hikes, though that may depend on your definition of “steep.” But what’s to be done with the price gougers when there’s no law preventing anyone from overnight price hikes of 5,000%? And how will drug companies handle the next controversy over sticker shock?
The Endpoints team gathered a few clips from the breakfast to offer a flavor of what’s being discussed. It’s clear that the debate has a long way to run, though, before it’s played out.
We also have the entire 52-minute panel discussion available for e-mail subscribers. (There’s never any cost to read Endpoints.)
Endpoints Editor John Carroll breaks it down
There does seem to be several different controversies about pricing. There’s not just one.
Alkermes CEO Richard Pops offers a different perspective
I come to it almost like a Martian from Mars coming to say, “How does this whole thing work?” It’s so bizarre because, I must admit, I don’t think any of us realized how frequently pharmaceutical companies were indeed raising prices over the last decade or so.
Allergan CEO Brent Saunders on gross vs net prices
(T)he 20-something drugs that we increased in January, was an average of about 7.5% price increase, but that’s gross. The net was closer to two to three.
Pops and Saunders talk value-based pricing
I would love to see a company come to market with a high-priced drug, quote unquote, and provide both a qualitative and quantitative justification for the way they priced it. Because people hate the opacity.
J&J’s Joaquin Duato on generics and biosimilars
In the next five years, we’re going to be facing around $150 billion of medicines that are going to lose patent and that’s going to be a source of regulating the market from another perspective.
PhRMA CEO Stephen Ubl has a plan
We’re going to launch a very ambitious, comprehensive, national communications and public affairs effort.
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