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Offbeat Many Drugmakers Ignore Trump—and Raise Prices Anyway

16:08  12 july  2018
16:08  12 july  2018 Source:   bloomberg.com

Trump says OPEC doing 'little' to help rising gas prices

  Trump says OPEC doing 'little' to help rising gas prices President Trump again took aim at the Organization of Petroleum Exporting Countries on Wednesday, accusing the organization of doing 'little to help' rising gas prices."The OPEC Monopoly must remember that gas prices are up & they are doing little to help," the president tweeted Wednesday afternoon, on the Fourth of July holiday. "If anything, they are driving prices higher as the United States defends many of their members for very little $'s. This must be a two way street.

One key proposal would involve pressuring other countries to raise their prices for prescription medicines. That is something the Trump administration says it wants to explore. The idea would certainly grab attention, and fear of a consumer backlash could pressure some drugmakers into

“Everyone involved in the broken system — the drugmakers , insurance companies, distributors, pharmacy benefit managers and many others — contribute to the problem,” Mr. Trump said.

Robert Hugin, chief executive officer of Celgene Corp., during an interview in New York. © Peter Foley/Bloomberg/Getty Images Robert Hugin, chief executive officer of Celgene Corp., during an interview in New York. President Donald Trump succeeded in convincing Pfizer Inc. to hold off on price increases it had planned for this month.

But the pharmaceutical giant wasn’t the only drug company seeking to charge more for its products in recent days.

In the first 10 days of July, at least ten other drugmakers and biotechnology companies raised prices on at least 20 brand-name medicines, a review of pricing data from Rx Savings Solutions and Bloomberg Intelligence shows.

The increases, for medications for cancer, diabetes, multiple sclerosis, and liver disease, were generally each less than 10 percent. But the price of one little-prescribed sleep aid was raised by more than 700 percent.

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DRUGMAKERS IGNORE ADMINISTRATION PROMISES ON PRICE CUTS — President Trump in Nearly two months later drugmakers are boosting prices on dozens of drugs Sarah reports that Bayer raised the price of two cancer drugs by hundreds of dollars and Novartis followed with price

Canadian officials say they have no interest in raising prices to allay the concerns of Trump But the Pharmaceutical Research and Manufacturers of America, the main lobby for drugmakers “In many countries, governments are the principal purchaser of medicines and effectively dictate prices ,” the

Celgene Corp. raised the price of blockbuster cancer drug Revlimid by 5 percent to $695.48 a capsule, according to data compiled by Bloomberg Intelligence and First Databank. Since Trump was elected in Nov. 2016, the drug’s price has been raised by over 25 percent through four separate increases.

Celgene also increased the price of Pomalyst, another cancer drug, by 5 percent.

The number of price increases in a short period suggests that Trump’s use of the bully pulpit is likely to have little impact on drug prices in the long term, said Michael Rea, chief executive officer of Rx Savings Solutions, which helps patients find low-cost drugs.

Some other drugmakers, under pressure from a new California price-transparency law and the broader political climate, have canceled plans to raise prices. Nevertheless, the number of increases “signals that the fear from government threat is waning,” said Rea.

Trump tweet slams Pfizer over drug price hikes

  Trump tweet slams Pfizer over drug price hikes The president says drugmakers "should be ashamed" of raising costs "for no reason," causing share prices to slipA presidential tweet roiled the pharmaceutical industry on Monday, with shares of Pfizer (PFE) and Merck (MRK) both taking a hit after President Donald Trump renewed his criticism of drug prices.

The rollback came a day after Trump took aim at Pfizer and other U.S. drugmakers for raising prices on some of their medicines, saying in a tweet that they “should be ashamed” and that his administration would respond.

List prices do not include rebates and discounts drugmakers may offer. On Monday, Trump took aim at Pfizer and other U.S. drugmakers after they raised prices on some of their medicines on July 1, saying his administration would respond.

“I expect no lasting impact from Pfizer’s agreement,” said Rea. While the drugmaker received blowback because of its prominence, other companies “are happy to be flying under the radar.”

Past Promises

In June, Celgene CEO Mark Alles vowed to limit price increases to once a year, capping them at the projected annual percentage growth in U.S. medical spending, which this year was forecast to be 5.3 percent. The latest increases are in line with that pledge.

“We recently took pricing actions for two of our eight FDA-approved medicines at less than the rate of anticipated U.S. health care spending growth for the year,” Celgene spokesman Greg Geissman said in an email. “No further pricing actions for these or any of our other FDA-approved medicines are anticipated this year.”

Still, “any price increase in the current environment appears bold,” especially after Pfizer’s showdown with Trump, Cowen & Co. analyst Phil Nadeau wrote Wednesday.

Pfizer postponing price hikes after Trump criticism

  Pfizer postponing price hikes after Trump criticism Pfizer announced on Tuesday it was postponing its price hikes on certain drugs after criticism from President Trump, who earlier in the week blasted the company for raising costs of certain products."Following an extensive discussion with President Trump today, Pfizer's Chairman and CEO Ian Read announced that it will defer the company's price increases that were effective on July 1 to give the president an opportunity to work on his bl ueprint to strengthen the healthcare system and provide more access for patients," the company said in a statement.Pfizer went on to say that the postponement was temporary.

The changes “could disrupt care and raise costs for Medicare beneficiaries,” jeopardizing their Many of Mr. Obama’s actions have been reversed by the Trump administration. In another move to reduce prices , Mr. Azar said, the Trump administration will publicly “call out” brand-name drugmakers that

U.S. President Donald Trump on Monday renewed his criticism against drugmakers over medicine prices and vowed action. "Pfizer & others should be ashamed that they have raised drug prices for no reason."

Celgene has been accused by rivals and patient groups of protecting Revlimid, its top-selling drug, from competition by making it hard for generic drugmakers seeking to make a cheaper copycat to get samples for testing. Revlimid had sales of $8.19 billion in 2017.

“The price of this drug shouldn’t be going up at all, it should have been going down for the past several years,” said David Mitchell, a cancer patient who started the advocacy group Patients for Affordable Drugs. He used to take Revlimid and is suing Celgene over alleged anticompetitive behavior.

Celgene has previously denied allegations of thwarting competition and said that it sold samples of Revlimid and related products several times to generic manufacturers for testing. It declined further comment.

Patent Overhang

Roche Holding AG, which recently canceled a planned 4 percent increase for anticlotting drug Cathflo Activase, raised prices on some of its costly top-selling cancer drugs.

This month, it boosted the price of a single-use vial of breast-cancer drug Herceptin by 3 percent. Avastin, another cancer drug, went up 2.5 percent, according to data compiled by Bloomberg Intelligence and First Databank. The changes follow increases for both drugs in January.

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No such announcements have since transpired, and it remains unclear why Mr Trump — who campaigned on lowering It is the second time this year that Pfizer has hoisted the prices of many of its medicines. Several other drugmakers also raised the prices of their medicines on July 1

More . Trump and Health and Human Services Secretary Alex Azar unveiled a blueprint to lower drug prices earlier this month. President Donald Trump said Wednesday drugmakers are going to announce "voluntary massive" price cuts in two weeks.

a screenshot of a cell phone: Still Climbing © Bloomberg Still Climbing

Insulin costs, a longstanding pain point for diabetes patients, have also risen this month. In early July, Novo Nordisk A/S raised the price of Levemir and Novolog by 5 percent, to $293.75 for a 10 milliliter vial of Levemir and $289.36 for a 10 milliliter vial of Novolog. Patients can use more than one vial a month. The Danish drugmaker also raised the price of its Victoza diabetes injection by 7.9 percent.

“Our decision to take a list price increase was not taken lightly,” says Ken Inchausti, a spokesman for Novo Nordisk. But the company continues to face pressure to provide more substantial discounts to insurers and drug-benefit managers, and its net prices have fallen in the past several years, he said.

Acorda Therapeutics Inc. said it raised the price of Ampyra multiple sclerosis drug by 9.5 percent this month because its patent is due to expire on July 30th.

“This was the last price increase on the brand,” said Tierney Saccavino, an executive vice president for Acorda. The company is appealing a court decision that invalidated several of its Ampyra patents. If it wins the appeal and generics don’t enter the market, Acorda won’t raise prices again on Amprya through the end of 2019, she said.

Sleep-Drug Surge

By far the biggest price increase this month -- of more than 700 percent -- came from tiny Aytu BioScience Inc., for an obscure sleep drug called Zolpimist. The new price of a 30-dose canister of the oral spray is $329.50, up from around $40. The price of a 60-dose canister rose to $659, up from around $70, the company confirmed.

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President Donald Trump in May said that drugmakers would soon announce “massive” price cuts, and his administration rolled out a plan to bring Combined, the increases raised the price by more than 0. Novartis also raised three cancer treatments — Kisqali, Mekinist and Tafinlar — in mid-June.

In a tweet on Monday, Trump said Pfizer and other drugmakers "should be ashamed" for increasing drug prices . Pfizer raised the price of 41 drugs by as much as 9 percent, though it also lowered prices on five "Importantly, list prices do not reflect what most patients or insurance companies pay.

Last year there were just 2,400 prescriptions for the drug, according to data compiled by Bloomberg Intelligence.

The move still leaves the product below the per-dose prices for other branded sleep aids like Ambien, Chief Executive Josh Disbrow said. He said that Zolpimist was underpriced when his company acquired it on June 11.

“We looked at the competitive pricing and the pricing across the board,” Disbrow said in an interview. “This is very much a niche product. It’s not priced to compete with generic pills, it’s priced really as a premium product for people who want a more rapid way of getting to sleep.”

--With assistance from Rebecca Spalding and Jared S. Hopkins.

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