1. #1
    Banned GennGreymane's Avatar
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    U.S. drug company sues Canada for trying to lower cost of $700K-a-year drug

    http://www.cbc.ca/news/health/u-s-dr...drug-1.3242172

    A U.S. drug company is taking the Canadian government to court for its attempt to lower the price of what has been called the world's most expensive drug.

    Alexion Pharmaceuticals has filed a motion in Federal Court, arguing that Canada's drug price watchdog has no authority to force the company to lower its price for Soliris.

    'This is the single greatest threat to pricing of drugs in Canada ever.'
    - Amir Attaran, health law expert
    The company says in the court documents that the price of Soliris has not changed since it went on the market about six years ago and that the price difference between the two countries reflects the difference in exchange rates between the U.S. and Canada.

    The medication is approved to treat two rare blood diseases that affect about one in every one million people. A 12-month treatment costs about $700,000 in Canada, while in the U.S. it costs about $669,000.

    Analysis: How pharmaceutical company Alexion set the price of the world's most expensive drug
    Man with rare disease urges province to cover drug costs
    Both diseases — paroxysmal nocturnal hemoglobinuria (PNH) and atypical haemolytic uremic syndrome (AHUS) — prompt the immune system to kill red blood cells, causing anemia, blood clots, organ failure and, eventually, death.

    While Soliris is not a cure, it can stop the assault on the body's tissues and organs. Since patients typically need to take the medication indefinitely, it can cost tens of millions of dollars over a lifetime.

    Due to the high cost, some patients in Canada can't get the drug. Only some provinces will cover the cost of treatment and there are different criteria to qualify for coverage in various jurisdictions.

    Soliris is the only drug Alexion produces, but it's earned the firm revenues of more than $6 billion over eight years.

    Canada's Patented Medicine Prices Review Board is challenging the cost of the drug, saying the price could be considered excessive and that it costs more in Canada than anywhere elsewhere in the world.

    The review board launched hearings in June to force Alexion to lower its price. That could force the company to reimburse Ottawa for past overpayments and provinces that have covered the drug costs could apply to recoup some of that money.

    Alexion fired back on Sept. 11 by filing a motion in Federal Court, asking for the review board to be prohibited from going ahead with its hearing — or from making any order that would affect the price of Soliris.

    'Greatest threat' to drug pricing

    A University of Ottawa professor who specializes in health law said he was shocked that Alexion would challenge Canada's authority to regulate drug prices. If Alexion's case is successful, it could end Ottawa's ability to control the cost of patented drugs, Amir Attaran told CBC News.

    "This is the single greatest threat to pricing of drugs in Canada ever," he said Thursday.

    The company has not yet returned calls for comment.

  2. #2
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    That's ISDS (investor-state dispute settlement) for you. The last blow to the already flimsy democracy dealt by our corporate overlords.

    Just wait till the EU ratifies TTIP, we'll have "arbitration" galore too.

  3. #3
    While I am generally a fan of free market, I do think that governments should start taking a heavy hand in regards to medical prices. Whether you're in a socialized medicine country or not, we shouldn't be allowing lives to be held ransom like this.
    Quote Originally Posted by Kaleredar View Post
    Nah nah, see... I live by one simple creed: You might catch more flies with honey, but to catch honeys you gotta be fly.

  4. #4
    Quote Originally Posted by oplawlz View Post
    While I am generally a fan of free market, I do think that governments should start taking a heavy hand in regards to medical prices. Whether you're in a socialized medicine country or not, we shouldn't be allowing lives to be held ransom like this.
    The government is protecting the pharma monopoly. If there was no fda we could get drugs from Canada for 10 cents

  5. #5
    Hard to justify $700,000/year from a cost-benefit standpoint. In a country with finite monetary resources (which I assume Canada still is), they'd certainly do better to spend the money elsewhere. If both sides of the border operated on that calculation, the price would drop, which would be nice.

  6. #6
    Drugs for rare diseases are going to be somewhat expensive. If the government forces down the prices too much, companies will stop developing drugs for rare diseases. Unfortunately, the opportunity for profit is what drove the development of the drug.

    I just hope everyone is reasonable. Companies shouldn't overcharge but governments have got to let the companies make some money.
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  7. #7
    The Insane Masark's Avatar
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    Quote Originally Posted by satimy View Post
    The government is protecting the pharma monopoly. If there was no fda we could get drugs from Canada for 10 cents
    Did you read the article before you went into "Smash regulation!" mode? The drug in question is in fact cheaper in the USA.

    Warning : Above post may contain snark and/or sarcasm. Try reparsing with the /s argument before replying.
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    The Insane Kujako's Avatar
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    Quote Originally Posted by oplawlz View Post
    While I am generally a fan of free market
    Pharmaceuticals are not free market, they get a LOT of federal funds for R&D.
    It is by caffeine alone I set my mind in motion. It is by the beans of Java that thoughts acquire speed, the hands acquire shakes, the shakes become a warning.

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  9. #9
    The Insane Masark's Avatar
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    Quote Originally Posted by Kujako View Post
    Pharmaceuticals are not free market, they get a LOT of federal funds for R&D.
    Socialize expenses, privatize profits.

    - - - Updated - - -

    Quote Originally Posted by Rurts View Post
    That's ISDS (investor-state dispute settlement) for you. The last blow to the already flimsy democracy dealt by our corporate overlords.

    Just wait till the EU ratifies TTIP, we'll have "arbitration" galore too.
    And the TPP for screwing up the rest of the Western world.

    http://www.msf.ca/en/trans-pacific-partnership

    Warning : Above post may contain snark and/or sarcasm. Try reparsing with the /s argument before replying.
    What the world has learned is that America is never more than one election away from losing its goddamned mind
    Quote Originally Posted by Howard Tayler
    Political conservatism is just atavism with extra syllables and a necktie.
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  10. #10
    Quote Originally Posted by Masark View Post
    Did you read the article before you went into "Smash regulation!" mode? The drug in question is in fact cheaper in the USA.
    Did you read the article? They are suing to retain monopoly rights, either you're arguing that monopolies are good or that buying drugs from other countries is legal.

  11. #11
    The Insane Masark's Avatar
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    Quote Originally Posted by satimy View Post
    Did you read the article? They are suing to retain monopoly rights, either you're arguing that monopolies are good or that buying drugs from other countries is legal.
    No, they are suing to prevent provincial/federal governments from clawing back money from them.

    They have monopoly rights on the drug because it's still under patent. It has nothing to do with other countries, other than the fact they're selling it in different countries for different prices.

    Warning : Above post may contain snark and/or sarcasm. Try reparsing with the /s argument before replying.
    What the world has learned is that America is never more than one election away from losing its goddamned mind
    Quote Originally Posted by Howard Tayler
    Political conservatism is just atavism with extra syllables and a necktie.
    Me on Elite : Dangerous | My WoW characters

  12. #12
    Quote Originally Posted by Masark View Post
    No, they are suing to prevent provincial/federal governments from clawing back money from them.

    They have monopoly rights on the drug because it's still under patent. It has nothing to do with other countries, other than the fact they're selling it in different countries for different prices.

    Can I as a American buy a drug that's being sold at a different price in Canada?

  13. #13
    The Normal Kasierith's Avatar
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    Quote Originally Posted by Hubcap View Post
    Drugs for rare diseases are going to be somewhat expensive. If the government forces down the prices too much, companies will stop developing drugs for rare diseases. Unfortunately, the opportunity for profit is what drove the development of the drug.

    I just hope everyone is reasonable. Companies shouldn't overcharge but governments have got to let the companies make some money.
    Orphan drugs (super small population pool) already get numerous benefits from patent extensions to enhanced proprietary protection to decreased cost of trials and entrance to the market. While it is true that profits are a significant concern, it isn't like they're facing the same barriers as normal market medications. Especially when you consider that the majority of orphan drugs are heavily researched at the hospital/university level and then passed on to drug companies afterwards for clinical trials.

  14. #14
    The Undying Breccia's Avatar
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    Oh my God, this is hilarious. I hope some Canadian RX company reverse engineers the drug, sells it for $0.50 a pill, and Canada refuses to extradite.

  15. #15
    Quote Originally Posted by oplawlz View Post
    While I am generally a fan of free market, I do think that governments should start taking a heavy hand in regards to medical prices. Whether you're in a socialized medicine country or not, we shouldn't be allowing lives to be held ransom like this.
    I agree, the free market doesn't work if there is no competition.

  16. #16
    The Normal Kasierith's Avatar
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    Quote Originally Posted by Breccia View Post
    Oh my God, this is hilarious. I hope some Canadian RX company reverse engineers the drug, sells it for $0.50 a pill, and Canada refuses to extradite.
    It's a monoclonal antibody... you're looking at thousands in manufacturing costs alone.

  17. #17
    Stealthed Defender unbound's Avatar
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    Quote Originally Posted by oplawlz View Post
    While I am generally a fan of free market...
    Almost everyone is; well, at least the idealized version that the masses think happens. What most people don't understand is that there is far less competition in the real world than what needs to exist for that idealized free market to happen. Alexion is far more common than most people think because there is a lot of PR BS going on all the time.

    Take Alexion themselves. For the past 1 year, they had $2.4 billion in revenues that cost $222 million to produce.

    Of course there is research and development, so of the $2.2 billion in gross profit, they spent $580 million in research. They spent $750 million on selling and administration. Basically, this is what they spend on sales people, but mostly inflated salaries / bonuses of their top executives. There was also $111 million in "Non Recurring" costs which can be everything from trashing stuff to paying penalties.

    So, before we even talk about the inflated salaries / bonuses of their top executives (and ignoring their R&D costs have resulted in zero new products ever), there remains $725 million in operating income.

    Yeah, plenty of room for them to take cuts on prices and they will still be highly successful.

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