In the news ... 2006 archive

Impacting the Market Price of Prezista

June 9, 2006

A campaign is currently underway to petition the leadership of Tibotec Therapeutics to break ranks with its competitors and set a new standard of responsible corporate citizenship. They can price their important new drug, darunavir, substantially lower than the last two protease inhibitors that came to market and still make a very healthy profit. We know this because the best selling protease inhibitor, Kaletra (by Abbott Laboratories), is priced far lower than its newer competitors.

Perhaps even more importantly, darunavir will reach FDA approval based on some of the easiest and least expensive requirements the FDA has asked of any company in the last ten years. Early on, the FDA apparently recognized the promise and potency of the drug and invited Tibotec to submit for approval on the basis of Phase II data, without waiting for completion of the normally required Phase III studies. This represents a large economic advantage for them, one that should be compensated with a respectively lower price.

The case for demanding a lower price from Tibotec is spelled out in a Consensus Statement being circulated throughout the country by an ad hoc action group called the Fair Pricing Coalition. The Fair Pricing Coalition Consensus Statement asks that Tibotec price its new drug no higher than Kaletra, which is still far from inexpensive ($9,555 annually, ritonavir boost included). The Statement does not ask that they cut the price to the bone, but only that they reverse the incessant trend toward higher and higher prices. As always, we expect additional discounts for government payers and a rock bottom price when the drug enters the market in developing nations.

The Consensus Statement can be read here: www.champnetwork.org. Hundreds of community organizations and individuals have already signed on and you can add your name or your organization’s name through the above web address. Each week, an updated list of all those groups and people demanding a fair price is delivered to the Glenn R. Mattes, the President of Tibotec Therapeutics. If and when any indication is seen that Mr. Mattes is not taking the petition seriously, it will be redirected to the highest levels of Johnson and Johnson, owner of Tibotec Therapeutics.

For more information on this and the topic of drug pricing in general, read the lead article in Project Inform’s PI Perspective #41.