How a Drug Maker Tries to Outwit Generics

[shoshin]

There is an article in the Wall Street Journal at

http://online.wsj.com/article/SB122696875770635577.html?mod=googlenews_wsj

that talks about this using Provigil as an example.

Apparently, the drug company

1. Came up with a new, improved version that lasts longer

2. Raised the price on the current version

3. Is planning to release the new version at a much lower price thus

4. Forcing most people to switch to the new version in the couple years before the generic comes out

5. Therefore, when the generic comes out, most people will be on the new, patent-protected version and presumably prefer that

Acccording to the article, "Cephalon [the company that make Provigil] acknowledges regularly increasing the price of its drugs, based on where in their lifecycles they are, market forces, its research-and-development costs and other factors."

The article also notes that "Provigil's price increase over the past four years has been almost four times steeper than the 4% compound annual growth rate of the average drug price during that period, according to a DestinationRx analysis of 2,570 brand-name drugs."

sho

[Lulu54]

I just was looking at the company that owns Provigil is in a dispute with the FTC  - suit was filed against them in Feb. 08 for anti-trust violations. they appear to have manipulated other mfg. from introducing their versions of generic Provigil until 2012.
those details are at http://www.ftc.gov/opa/2008/02/ceph.shtm  

[Lulu54]

That's an interesting tactic from the corporation to raise their profits and most of us with insurance are never even aware of it - but it is passed on directly through our insurance costs. What can the medical consumer do?

Wondering,
Lulu

[essdipity]

Yet another case of the consumer getting s-crewed. I'm wondering if the same sort of thing is going on with the 'new and improved' version of Imitrex (for migraines). The drug company is advertising heavily on TV about this. I think there's just some Advil added, or something small like that, but I'm not sure.

ess