Just in time for the holidaysI meant to post this yesterday. Despite public and professional outcry, Abbott Labs is quadrupling the price of Norvir, an essential component to a number of AIDS drugs. Critics of the price hike cited by the Journal say Abbott's intention is to push patients away from using Norvir in drug cocktails and switch to its newer AIDS treatment, Kaletra -- something Abbott denies. They also say the company's decision involving the 7-year-old drug raises questions about the industry's traditional contention that drug prices are high because of the need to recoup research and development costs.Patently absurd. And shrewd as hell. After all, "...about 80% of all HIV antiretroviral regimens contain Norvir to boost the effects of other protease inhibitors, and the cost of such regimens could climb by a minimum of $200 per month under the new pricing structure. That's a whole lotta recouping there. Especially seeing as Roche and Merck paid for most of the ritonavir R&D. Abbott also says that the price increase "reflects the value that Norvir brings to combination therapy," which is a nice way to say: there's a price on human life. Now, they say that "90% of US patients will not be affected by the price increase because they are covered by medical insurance of some sort, and any patient who cannot afford Norvir, or whose insurer refuses to cover the cost of the drug, will be able to receive free medication," but what does this mean for the folks who fall in the other 10%, the people on Medicaid and other ADAPs who will suffer when formulation restrictions are imposed, or later on in 2005 when the governmental price freeze is lifted, the folks in developing countries, or, for that matter, the entirety of tax-paying (and insurance-premium-paying) America? It remains to be seen. After all, this pricing strategy is simply a matter of supply and demand. Posted by Dana at 09:13 AM
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