Orphan Drug Prices Under Siege in Austerity-Minded Europe
April 9, 2013 Leave a comment
Orphan Drug Prices Under Siege in Austerity-Minded Europe
Treatments for rare diseases are hot properties for drugmakers, who covet the medicines for their exclusive markets, tax breaks and through-the-roof prices. Now that’s changing.
This year, the Netherlands demanded cuts in the prices of enzyme-replacement therapies including Sanofi (SAN)’s Myozyme, which costs 700,000 euros ($909,000). Ireland won a “significant” reduction in the cost of Vertex Pharmaceuticals Inc. (VRTX)’s Kalydeco for cystic fibrosis, and the U.K. rejected a recommendation to expand the use of Alexion Pharmaceuticals Inc. (ALXN)’s drug Soliris, which is prescribed for two blood disorders.
As more medicines win approval to treat diseases that affect no more than 5 in 10,000 people, austerity-conscious governments in Europe are applying the same pressure to so- called orphan drugs that they do to widely prescribed medicines for heart disease and diabetes. That’s putting the brakes on an $86 billion sector of the pharmaceutical industry that’s been expanding twice as fast as the market as a whole. Read more of this post








