Orphan Drug Pricing and Costs: A Case Study of Kalydeco and Orkambi.
Journal
Healthcare policy = Politiques de sante
ISSN: 1715-6580
Titre abrégé: Healthc Policy
Pays: Canada
ID NLM: 101280107
Informations de publication
Date de publication:
08 2019
08 2019
Historique:
entrez:
21
10
2019
pubmed:
21
10
2019
medline:
8
9
2020
Statut:
ppublish
Résumé
A common narrative is that high prices are necessary for "orphan drugs" because of the fewer patients. In the context of state health insurance systems, the high prices create significant challenges because of limited budgets. This study carefully examines both costs and revenues of two drugs for cystic fibrosis (ivacaftor and lumacaftor), showing that, for this important example, prices are not high because of fewer patients. The study then explores the justifications usually given for high orphan drug prices, including the need to support research and development for new drugs. Each of these standard justifications is shown to be inadequate; instead, it appears that the exercise of market power in the presence of insurance is the dominant driver of high prices. Insurers need to re-examine how they address high-priced drugs.
Sections du résumé
BACKGROUND
A common narrative is that high prices are necessary for "orphan drugs" because of the fewer patients. In the context of state health insurance systems, the high prices create significant challenges because of limited budgets.
RESULTS
This study carefully examines both costs and revenues of two drugs for cystic fibrosis (ivacaftor and lumacaftor), showing that, for this important example, prices are not high because of fewer patients. The study then explores the justifications usually given for high orphan drug prices, including the need to support research and development for new drugs. Each of these standard justifications is shown to be inadequate; instead, it appears that the exercise of market power in the presence of insurance is the dominant driver of high prices.
INTERPRETATION
Insurers need to re-examine how they address high-priced drugs.
Identifiants
pubmed: 31629457
pii: hcpol.2019.25937
doi: 10.12927/hcpol.2019.25937
pmc: PMC7008693
pii:
doi:
Substances chimiques
Aminophenols
0
Aminopyridines
0
Benzodioxoles
0
Chloride Channel Agonists
0
Drug Combinations
0
Quinolones
0
Types de publication
Journal Article
Research Support, Non-U.S. Gov't
Langues
eng
Sous-ensembles de citation
IM
Pagination
70-80Subventions
Organisme : CIHR
Pays : Canada
Informations de copyright
Copyright © 2019 Longwoods Publishing.
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