Community Chat

[JillyMarie]

From Fortune online.

The U.S. drugmaker Novum Pharma has raised the price of two of its skin care treatments that are commonly used to treat conditions such as eczema and acne to nearly $10,000, according to figures by the Financial Times.

Last week, Novum raised the price of a 60g tube of Aloquin, which is used to treat conditions such as eczema and acne, by 128% to $9,561, the Financial Times reports. The drugmaker increased the price, Alcortin A, another skincare treatment, by the same amount. And a third ointment, Novacort, saw a $2,956 price increase from $4,186 to $7,142 for a 29g tube.

But what’s particularly baffling about the Aloquin price hike is that the two main ingredients in the ointment are rather inexpensive. According to the Financial Times, Aloquin includes iodoquinol, an antibiotic that has been around for decades that prevents fungal growth, and aloe polysaccharides, an ingredient that comes from the aloe vera plant. A generic form of a similar cream that also contains iodoquinol costs less than $30, and a tube of aloe vera can be purchased for just a few dollars.

What’s more? Aloquin’s label says it is “possibly effective,” meaning there’s only small amount of clinical evidence suggesting the product is safe and will work, the Financial Times reports.

 
“From a clinical standpoint, a drug listed as ‘possibly effective’ by the FDA, shouldn’t be a likely treatment choice by doctors — especially not with a $10,000 price tag,” Michael Rea, chief executive of Rx Savings Solutions, first told the Financial Times.

Overall, the price of Aloquin has increased 3,900% since May of 2015. Novum has steadily increased its price since that time, when it acquired the drug from Primus Pharmaceuticals, its previous owner. A spokesperson for the drug company told the Financial Times that revenue from increased prices would go to investing in “schemes that ensured more patients could access the medicine.”

More than doubling the price of its ointments, the Chicago-based group’s price increases comes less than a month after that of the EpiPen, the life-saving medical innovation for people with severe food allergies. A pack of two EpiPen now costs around $600—a 500% price hike that has caused outrage, and even prompted xxxxxxxxx nominee xxxxxxx  xxxxxxx to attack and question pharma giant Mylan, the producer of EpiPen.

Fortune has reached out to Novum and will update the story if it responds.

[millieshops]

It makes little sense.  But so many things don't make sense to me.

Why is it we think little of paying a Hollywood actor or a professional football player millions and millions, but we pay scientists and doctors who work quietly in the background developingpotentially life-saving devices and meds pretty ordinary incomes?

We seem to be happy paying a pre-school teacher we trust with our children a minimum wage while we pay a fashion designer princely sums.

I know some of the reasons, but sometimes I think our values are not anywhere near where we say they are -  not in a society where money is definitely the biggest indicator of value.

[Mary Bailey]

IMHO ...The insurance companies should lobby to have more Rx to be OTC they did that with yeast infection and allergy meds. 

It's an old documentary, and a lot of people don't like Michael Moore, but a real eye-opener is "Sicko"

[January121]

This is so sad ..... it's like a bad dream ..... how can people pay $10,000 for a tube of medication? .... I wonder if the insurance companies cover any part of this????

[3suwm5]

Interesting indeed.

Do we know what these pharma companies expenses are?

The free market allows companies to charge what they want, so expenses for everyone on anything will be dictated by supply and demand.MO

People will go to football games, for example, no matter the cost.  That's why the players can demand ridiculous salaries.

People will use facebook, for example, because they want to do so, that's why the Zuckerburgs can give out zillions of $$$ for diseases, etc.

There are many examples in the country we can point to that supports the free society.  Everyone is free to pursue a career in anything they choose, if the pay is great, super, if it is not so great, maybe you should have chosen another field.  The compensation may not make sense to all of us, but we are free to work in something that we like and free to purchase most things we want.  That is not a surprise, we all know this. 

My DH works with satellites that keep the entire COUNTRY safe, I think he should be paid much more than a pro. althlete.  It's not up to me, it's up to the values of this country's citizens.MO

Do we want all of this to stop?  I think not.  We all want our investments to grow, so we can retire at some point and not have to live under a bridge somewhere.  How do social program's get funded, by the free market and the taxpayers working in it.MO

[JillyMarie]

Laissez-faire capitalism is fine and dandy until it results in products/prices that exclude  all but the mega-wealthy.  I take losartan for blood pressure.  What is to stop pharma from deciding that the price of this drug should be $700 per dose?  Absolutely nothing.  Quite frankly, I don't see what Tom Brady's [just an example] salary has to do with egregious, predatory pricing on the part of drug companies. 

[QueenDanceALot]

Pro Athletes salaries have zippo to do with it.

Nor do anyone else's.

[bri20]

See, part of the problem is "the insurance companies will pay for it" so they can charge these exhorbitant amounts of money for drugs. 

There is no reason why most of these drugs cost as much as they do, IMO

[QueenDanceALot]

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@bri20 wrote:

See, part of the problem is "the insurance companies will pay for it" so they can charge these exhorbitant amounts of money for drugs. 

There is no reason why most of these drugs cost as much as they do, IMO

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But the insurance companies will put it in a "Tier 3" or something and you still end up paying through the wazoo

It's just a big racket.

[3suwm5]

All are examples  of the free market. If people didn't pay outrageous amounts for a football game, the athletes wouldn't get those kind of salaries. MO 

Research, drug approval or NOT, maybe more research, more cost for research, maybe drug approval, start to market and consumer purchase.MO

Research, in our personal experience at our own lab (not medical) is VERY expensive.  Costs add up quickly and just because there may be a profit this year, doesn't mean the entire profit will be available next year.  It might be spent the first month of the new year on equipment and/or supplies.  People don't realize what goes on in research.  I didn't until I started taking care of our books.  I see it with my own eyes. MO

Anyone having personal knowledge of research $$$ in and out, I'd love to hear your take on it.