Merck Is Latest Drugmaker To Lower Some Prices, Earning Political Points As White House Prepares Cost Plan
Merck follows Pfizer and Novartis in dropping prices on a few of their drugs. But, like with the other two, beneath the promise is a strategy that makes it uncertain if consumers will benefit. For example, Merck lowered the cost of its hepatitis C drug, Zepatier. But that treatment has not gained traction in the U.S. marketplace anyway, so the drop could actually be an attempt to boost Merck sales for an underperforming drug.
The Hill:
Merck To Lower Prices For Some Drugs
The pharmaceutical company Merck on Thursday announced it would lower the costs of some drugs in its portfolio. The company will drop the price of Zepatier, a Hepatitis C drug, by 60 percent, and decrease the costs of "several other" drugs by 10 percent. It also said it would not increase the average net price of drugs in its portfolio by more than inflation annually. (Hellmann, 7/19)
Stat:
Merck Joins The List Of Drug Makers Agreeing To Freeze Or Lower Some Prices
In a brief statement, the company agreed not to increase the average net prices of its medicines by more than inflation annually, and then also dropped the wholesale — or list — price by 60 percent on its Zepatier hepatitis C treatment and lowered list prices by 10 percent on a half dozen other drugs. However, the extent to which its moves will actually be meaningful are being questioned. (Silverman, 7/19)
Bloomberg:
Trump's Drug Plan Picks Up Momentum As Merck Lowers Some Prices
HHS Deputy Secretary Eric Hargan punctuated the moves on Thursday when he delivered some tough words to drug-company executives who make up the board of the Pharmaceutical Research and Manufacturers of America. “The blueprint is very real, it’s definitely the president’s blueprint and the sweeping reforms contemplated in it are on the way,” Hargan told the lobby group in a closed-door meeting. “When this president talks about fundamental change to drug markets, he follows through.” (Edney, 7/18)
The Wall Street Journal:
Merck To Limit Drug-Price Increases, Cut Some Prices
Merck, based in Kenilworth, N.J., said it was cutting prices “to help reduce patient out-of-pocket costs.” The price cuts will go into effect in the fall, a spokeswoman said. Merck and other drugmakers typically pay rebates to pharmacy-benefit managers and insurers that amount to discounts from list prices. But uninsured patients and those with high-deductible health plans can still be on the hook for the full list price. (Loftus, 7/19)
The New York Times:
Merck To Lower Prices On Some Drugs, But Not Its Blockbusters
The move follows recent announcements by Pfizer and Novartis that they would freeze price increases for the rest of the year, as the industry confronts sustained criticism from President Trump, lawmakers and the public over the rising cost of prescriptions. Merck’s action shows just how cautiously the industry is shifting strategies: It did not cut the prices of any blockbusters like the cancer treatment Keytruda or the diabetes drug Januvia. Instead, it said it would reduce by 60 percent the list price of Zepatier, a hepatitis C drug whose recent sales have dipped so low that, after paying after-the-fact rebates to insurers, the company recorded no sales in the United States for the product in the first quarter of this year. (Thomas, 7/19)
Politico:
Trump Meets With Drug Giant's CEO As Part Of Price Squeeze
The CEO of drug giant Pfizer met with President Donald Trump at the White House today as the administration pressures drugmakers to voluntarily rein in prices, according to multiple industry sources. Ian Read's appearance followed a Trump tweet this morning that thanked Pfizer and the Swiss manufacturer Novartis for pledging not to raise drug prices further this year. Top pharmaceutical industry CEOs are in Washington for an annual planning meeting of the major drug lobby PhRMA. (Karlin-Smith and Restuccia, 7/19)
Kaiser Health News:
Podcast: KHN’s ‘What The Health?’ Drug Prices And Unicorns
A trio of court actions provide news for this week’s “What the Health?’” panel. A federal appeals court this week handed hospitals a setback in their effort to stop the Trump administration from cutting funding for a program that provides deep discounts on drugs. Physicians sued health insurer Anthem for its policy of retroactively declaring some emergency department claims not to be an emergency. And the Pennsylvania Supreme Court upheld the city of Philadelphia’s controversial tax on sweetened beverages. (7/19)