Pharmaceutical Manufacturers are facing heightened public and legal scrutiny when it comes to the pricing of Specialty Pharmacy drugs. The issue was thrust into the spotlight in recent months as private Hedge Funds have purchased small Specialty drug companies and raised prices to levels deemed by the public to be egregious. The public outcry against pharmaceutical profiteering has now spread to large publicly traded mainstream manufacturers.
A report released on December 1, 2015 by Senators Ron Wyden and Charles E. Grassley criticized Gilead Sciences, Inc., the developer of hepatitis C drug Sovaldi for valuing revenue maximization over affordable patient access when pricing the drug. Gilead priced a single course of treatment with Sovaldi at $84,000.00. The report found that the high treatment cost triggered access restrictions across public and private payors and thus limited patient access. The pricing, the report noted, indicates a scheme for pricing and marketing that disregards human consequences, and one that will cost billions.
As more specialty medications come to the market with prices that potentially limit access to medication and create burdens on both public and private payor, the government becomes more likely to impose greater regulation on the industry. Frier Levitt provides guidance to our pharmaceutical manufacturing and bulk chemical ingredient repackagers operating in this highly regulated space. Contact Frier Levitt today to learn more about drug pricing Pharmacy Law.