The common belief is that as GLP-1s become more popular, that will stimulate competition in generics and new drug development. This is all good, right? However, this has not always been true. This news article provides a detailed account of the history and exorbitant pricing of the drug Revlimid, a derivative of the controversial drug thalidomide, used to treat multiple myeloma. It traces the drug’s journey from the desperate search for a treatment for a dying patient in the late 1990s, through its rediscovery and development by Celgene, to the company’s aggressive tactics to maintain market exclusivity and repeatedly increase its price. The text also touches on the personal impact of the disease and the drug’s cost on the author and other patients, highlighting the failure of federal regulators to curb price increases and the enormous profits reaped by Celgene and its executives.
The Price of Remission by Davis Armstrong May 8, 2025, Propublica.org
There are other stories of drug companies raising their prices even though there are other drugs on the market. For example, Novartis launched its breakthrough cancer drug, Imatinib, in 2001 the list price was $26,400 a year. Today, the US wholesale list price for the same drug is more than $120,000. Johnson, Carolyn Y. “This drug is defying a rare form of leukemia and it keeps getting pricier“: Washington Post. March 9, 2016 How does this happen?
Patients would like to think that drug prices are subject to normal laws of economics and capitalism. I wish that were true too, but drug companies don’t alway play fair… Drug prices are influenced by a complex set of factors that cross scientific, regulatory, economics and market domains. Just some of the factors include:
- Research and Development costs
- Regulatory Environment
- Market Exclusivity and Competition
- Manufacturing Pricing Strategy
- Insurance and Payer Structures
- Legal and Intellectual Property Tactics
- Supply Chain and Manufacturing
- Public Policy and Regulation
- Demand Factors
- International Price Referencing
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