Congress has recently taken a few months off from constantly barraging the pharmaceutical industry with daily probes and negative news. However, on Thursday, August 17, 2017, Representatives Elijah Cummings of Maryland and Peter Welch of Vermont announced a probe into multiple sclerosis (MS) drug costs, focusing on pricing from seven different pharmaceutical companies, starting with letters to those companies.
Cummings and Welch are asking Bayer, Biogen, Serono (Merck KGaA), Novartis, Sanofi, Teva, and Roche for details about their pricing, focusing on the reasons behind price increases over the past several years. Teva leads the pack with price increase – Copaxone 20mg increased over 1000% from 1996 through 2017. Compare that to Biogen’s Avonex (also approved in 1996), which increased by 691% during that same period.
The average annual cost of MS therapy rose to $78,000 in 2016 from $16,000 in 2004, according to the National Multiple Sclerosis Society.
A table created by FiercePharma shows the top fifteen MS drugs and their costs, along with the years the drugs were approved in and the percentage increase since the year of approval, can be seen below.
A joint press release issued by the representatives states,
We are launching an in-depth investigation to determine why drug companies are dramatically increasing their prices for drugs used to treat Multiple Sclerosis (MS), which is a disease of the central nervous system that often has devastating and disabling effects on patients. We believe no American should be forced to struggle to afford lifesaving medical treatments, especially when drug companies increase prices without warning, cause, or justification.
In the letters, Cummings and Welch cited an American Academy of Neurology Study that found some drug companies seem to be increasing their prices and setting new, higher prices in tandem with their competitors.
The letters requested information to evaluate the substantial price increases of MS drugs, including information about corporate profits and expenses and documents concerning pricing strategies, patient assistance programs, and drug distribution systems. They requested the information be provided by August 31, 2017.
Representatives for Biogen, Novartis, Merck KGaA and Teva said the companies are reviewing the letters. A Bayer spokesperson said the company plans to respond directly. A Roche spokesperson said the company “will work with the Congressmen to address their request and questions.”
This is the latest investigation into high drug prices in Congress. Some investigations have led to legislation to clamp down on high drug prices. For instance, Congress recently passed legislation that lets the FDA boost competition for off-patent drugs that see high price hikes.
Please see the following links for the letters to Bayer, Biogen, Serono, Novartis, Sanofi, Teva, and Roche.