What’s New is the World of (Legal) Drugs?

The Big Pharma Shuffle—Yet Again

Over the years, large pharmaceutical companies (Big Pharma) have purchased (in friendly or unfriendly takeovers) smaller pharmaceutical companies (Less Big Pharma) that had popular and profitable drugs on the market. Pfizer (Big, Big Pharma) has been very good at this. Since Pfizer’s Viagra will no longer be patent protected after 2020, Big Pfizer needed a new superstar drug. Viagra has been one of the most profitable drugs ever. Teva Pharmaceuticals will produce a generic version of Viagra starting in 2017 (just thought you’d want to know that).

Enter Xtandi (enzalutamide), Medivation’s successful and very expensive late stage prostate cancer hormone treatment. Pfizer was willing to pay $14 Billion for the company and Medivation was willing to take it. The transaction is in process. When approved, Pfizer will simply write a check with a lot of zeros on it. Earlier this year Pfizer received FDA approval for an advanced breast cancer drug called Ibrance. With the merger Pfizer will immediately become a major player in oncology. Pfizer explains it all in a very comprehensive Press Release.

In the Big Pharma world, big companies get bigger and smaller companies disappear. Fewer companies own more drugs and have more control over drug costs. This is good for corporate profits but might not be so good for us consumers in the long run. Just sayin.’

Drug Price Increases

Massive drug price increases have been in the news recently—Epi-Pen and Albuterol and Embrel and Humira are well-known brands that come to mind. Many other drug prices have risen steadily but often by smaller percentages several times a year and they don’t attract as much attention.

Generic drug makers are just as likely to hike prices as the brand names. It’s just that the generic drugs often start out at much lower prices and the increases are not always as obvious. People complain, they contact Congress, they flood social media, threaten to boycott the drug (which hurts the patient), and the result of all this is: nothing changes. 

Drug Companies (AKA Big Pharma) do just fine. Having a monopoly on a necessary or life-saving drug makes for a good business plan for any pharmaceutical company.

Truth in Reporting

I have at least two connections to this article that may keep me from being totally unbiased. First of all, I used Xtandi for several months when my previous medication (abiraterone/Zytiga) became less effective. My short experience with Xtandi was unsuccessful. In just a couple of months my PSA skyrocketed and I moved on to chemotherapy. So, no matter how expensive it was it didn’t work for me. Bummer. And second, I have a close relative who works for Pfizer.

Big Pharma, expensive drugs, corporate mergers, and the customers will pay the price. Nothing changes under the sun. Except that everything under the sun becomes more expensive.

axman