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This is an issue beyond insulin. I hope they don't just focus on insulin. Generics do not work to lower prices on drugs because there is price fixing between c
by maire 7y ago
This is an issue beyond insulin. I hope they don't just focus on insulin.
Generics do not work to lower prices on drugs because there is price fixing between companies. Price fixing is illegal in the US but does not seem to be enforced.
I discovered this because my sister in law has a rare disease and she depends on a rare drug called syprine. Her drug costs went from 177.00 a month to $8000.00 a month where it hovered there for a year, then it went up to $43,354.73 a month.
The US funds the manufacture and research on drugs for rare diseases but only while the drug is under patent. Once the drug is out of patent then there is no regulation. These are called "orphan drugs."
It turns out that Valeant (the maker of syprine) was guilty of price fixing and was under investigation by the federal trade commission. The case went all the way to the supreme court which came down against Valeant. The end result seems to be nothing.
- stunt 7y ago> Price fixing is illegal in the US but does not seem to be enforced Those companies are too powerful. There have been many investigations, but you never hear anything back.
- RobertoG 7y agoIn order to fix a price with your competitor, the only thing you need is an information channel with them. The price in itself carries information, so, I would not be surprised if in many cases not conversations are happened between the parties, but all the necessary information exchange have happened through the prices. That would be very difficult to police.
- JustSomeNobody 7y agoThis works for competing gas stations. One raises the price by a penny, the one across the street sees this and does the same thing.
- rtkwe 7y agoIt's also that the insurance and medical care markets don't work properly as markets because of a whole host of factors, eg who has the time or knowledge to comparison shop drugs (if there's even multiple drugs that will treat your condition!) and even for the few people that do have the knowledge insurance disguises the true cost for most people. Combine that with the difficulty of becoming a drug manufacturer and the fact that there's only a handful making each drug we don't even have to have coordinated price fixing, if you competitor raises their prices there's very little reason to not raise yours as well because there's either a) no substitute to that drug or b) patients and doctors are shopping by effect not cost for 99% of the time.
- toyg 7y ago> [monthly] $43,354.73 That's half a million per year. At that price, unless syprine's manufacturing process requires digging diamonds, one could probably save money by hiring a dedicated chemist (100k p/y or thereabout) and giving them the necessary money to make the drug just for one. If I were an insurance company, I'd consider buying a small pharma outfit and target it at these orphan drugs just to save money.
- consp 7y agoI'm no chemist but the stuff doesn't look too complicated. And noting the stuff used to cost far less ...[1] [1] https://en.wikipedia.org/wiki/Triethylenetetramine https://en.wikipedia.org/wiki/Triethylenetetramine
- greatpatton 7y agoAs a chemist you won't even bother to do the synthesis. You just order it from Sigma-Aldrich. Currently it cost about 300$ for 100g.
- yread 7y agoNot a chemist but in NL S-A shows 33,50 eur/100g (ships today!) https://www.sigmaaldrich.com/catalog/product/aldrich/132098?lang=en®ion=NL https://www.sigmaaldrich.com/catalog/product/aldrich/132098?...
- jonlucc 7y agoAs I'm sure you know but so that others understand, that's technical grade, not pharmaceutical grade.
- sigmahead 7y agoInteresting! However on Sigma-Aldrich website it says: technical grade, 60% How do you get from 60% to 99%? Do you have to (for pharmaceutical grade)? What are the remaining 40%? poison? harmless byproducts?
- vharish 7y agoIs it not possible to get it from another country like India?
- dnautics 7y ago> The US funds the manufacture and research on drugs for rare diseases but only while the drug is under patent. Once the drug is out of patent then there is no regulation. These are called "orphan drugs." This is exactly the opposite of the case. The FDA wanted to encourage manufacturers to conduct new safety and efficacy trials on drugs (that can be out of patent) to treat 'orphan conditions', which are conditions that exist in rare populations, which could be currently off-label indications. Because it is outside of the scope of the FDA, the FDA cannot incentivise you to help this class of underprivileged people by extending your patent monopoly. What it can do, is to give you the exclusive rights to advertise your drug, which, in the US, is a de facto monopoly. Of course, this regulation is highly abused. https://www.spectrumnews.org/news/drugmakers-manipulate-orphan-drug-rules-create-monopolies/ https://www.spectrumnews.org/news/drugmakers-manipulate-orph...
- candiodari 7y agoWhy isn't there a list with alternatives distributed, say, by the federal or local governments ?
- hinkley 7y agoLobbyists are a lot like genies. You ask for something that sounds perfectly reasonable, and when you get it you wish you'd never met them.
- PaulHoule 7y ago"I hope they don't just focus on insulin." is a great point. One way we have gotten into this mess is going at healthcare in a piecemeal fashion. First we have a program for the seniors, then for the veterans, then for the poor, then we get COBRA and "you can keep your children on your employer's plan until they are 26", then there is Obamacare which can be good sometimes and bad other times. (When I am between jobs I have a $20 premium and a $15 copay. When I am making moderate money I my premium is similar, but I get high deductible "junk insurance" where I pay more like $150 for a visit. I could buy low deductible insurance but the price difference is about the same the deductible) Each time they add a new piece to the system, you are left with the remainder that is more intractable. If they do something special for insulin that will somehow cost the government a lot of money and then next time it will be some other drug. If they really wanted to save money they would start dismantling parts of the system. For instance, eliminate the tax deduction for employer insurance and herd everybody onto Obamacare. "Medicare for all", something like that.
- tarr11 7y agoArticle about syprine in NYT (2018) https://www.nytimes.com/2018/02/23/health/valeant-drug-price-syprine.amp.html https://www.nytimes.com/2018/02/23/health/valeant-drug-price...
- kuzehanka 7y ago> Valeant I know that name. Valeant doesn't do any r&d. Their entire business model is to buy up rights to, or manufacture drugs that are supply limited, and ratchet up the prices to the maximum that the market will permit. They typically end up selling these drugs at 100k-10m times higher than the cost to manufacture. They've also ceased manufacture of several life-saving drugs because the profit margins weren't high enough for their model. I am anti death penalty, but I would make an exception for the people who run the likes of Valeant. Profiteering off people with rare diseases belongs in a lower ring of hell than serial murder.
- navigatesol 7y ago>I am anti death penalty, but I would make an exception for the people who run the likes of Valeant. Amazing how many times on this forum I've read people suggesting people should be killed for what are, at this point, nothing but alleged crimes. Where does such an inhumane mindset come from? Hypocrisy?
- kuzehanka 7y agoMoral thought experiment: who do you think deserves a greater punishment - a drug addict who stabbed your child during a high, or a CEO who knowingly prevented your child and hundreds of others from being able to afford the only life-critical medicine available in order to maximise their profits, even though the cost to manufacture that medicine is 1/100000th of what it was being sold at? This isn't hypothetical, GP is talking about a treatment that went from ~$200/mo to ~$43k/mo simply because a bunch of heartless assholes figured that was the point of max profit even if it ruins the lives of a bunch of people and kills a bunch more. Is my viewpoint hypocrisy? I don't think so. Your comment seems to be centred around the alleged part, and I also strongly oppose the death penalty because of the false-positive rate of convictions. But take an hour out of your life to study Valeant and its leadership, and come back and tell me that you believe that there is room for error in their motive or the outcome of their actions. These are people who have found loopholes in the law and have grossly crossed any imaginable ethical boundaries. The only contentious part of my viewpoint is that I believe ethics supersedes law, and the heads of Valeant have technically complied with the law despite falling to the lowest low of ethics. These people are gaming the system at a level that most hard convicts wouldn't consider. I upvoted your comment, it is a good avenue of discussion.
- Balgair 7y agoMy SO takes a drug that also varies wildly in cost [0]. Some insurances will price it at ~$3/mo, while others will price it at ~$10,000/mo. Yes, really. I've had to turn down a fair few job offers due to this issue with insurance. Once, after I told them that I had to turn down the offer I was told: "Don't throw your career away". Like, dude, it's the health of my SO, I have no choice, get better insurance. The funny thing is that this drug is given to horses in their feed. Like how we just put Vitamin D in our milk or Iodine in our salt, they put this drug in horse feed. I've tried to buy it this way, but you need a vet's license in this state to buy it wholesale. If things get bad, I'll try to buy it off of farriers or something and then dilute it down. So, to be clear, my SO takes a drug so cheap they literaly toss it into horse feed, but some insurances will try to charge us ~$1000/gram for this. [0] It's not really a drug per se, it's more of a supplement in that it does not cross the blood-brain barrier. It interacts in a more digestive sense. P.S. I've written before about the issues with CU-Anschutz and vaccinations here and it may be interesting to you: https://news.ycombinator.com/item?id=19760317 https://news.ycombinator.com/item?id=19760317
- PascLeRasc 7y agoHave you looked into the nootropics community? /r/nootropics is the one I frequent but there are other sites out there. They're pretty good at finding ways to order drugs and supplements not designed to be sold for human consumption, someone might know how to order it from another state or country.
- ineedasername 7y agoGenerics do work to lower prices, at least over time. I've been on two medications that, when started, their patents were about to expire. They still cost a small fortune, $700 to $1000/month on retail cost without insurance. Over the course of about 6 years, the generics were introduced and were also initially very expensive, but the competition gradually lowered prices and they're now sub-$100/month for the generic, and maybe 3x that for the Brand name (still expensive for the brand, but significantly cheaper). The problem with the astronomically escalating drug prices tends to be those where there's a bottleneck of a single producer. Two manufactures would help this, and syprine is an excellent example: According to NYTimes [0] Syprine was about $21k when Teva introduced a generic, which was priced around $18k. In the roughly 2 years since though, the price has dropped significantly down to about $11k [1] I suspect it will continue to drop as the two manufacturers gradually undercut each other over & over again. It's a slow process, and it could be much, much better, but it is one avenue of attack against these abusive pricing tactics. [0] https://www.nytimes.com/2018/02/23/health/valeant-drug-price-syprine.html https://www.nytimes.com/2018/02/23/health/valeant-drug-price... [1] https://www.goodrx.com/syprine https://www.goodrx.com/syprine
- Zenst 7y agoIt always saddens me of how goverments deal with consumer injustice. Time and time again an issue is left to fester until it becomes fiscally or pr fashionable to do something about it. Then they end up cashing in with a big fine upon the company involved. Goverment gets a nice payout, consumers who have been shafted for years - just end up paying for the shafting and then in many cases, indirectly end up paying for the fine. I'm certainly a bit of a cynic in my age, but I does kinda feel like governments use consumer abuse as a revenue stream thru fines. The only consumer alternative to get financial justice always falls down to class actions/private cases more than not and in process's that takes forever. Frankly I fail to understand why their is no consumer protection as any price increase of over X% in any field should always be investigated. More so the entire drugs industry. Even if that trigger was 100% in a period of a year, it would be a start in preventing such abuse. Which it is blatantly more than not. It's as if such companies are aware of what they are doing, not even illegal drug dealers push their prices up that much upon a captive market. That certainly puts some perspective upon such activities in the legal drug industry.
- shipof123 7y agoI worked in IT at a company that was a specialty hub and one of three big jobs was convincing insurers to cover drugs for rare illnesses. I think the majority of why it’s hard to pay for these drugs is the fault of the massive pharma cartels, but insurance might also play a role.
- swayvil 7y agoIs buying syprine from India an option? https://www.gnhindia.com/products/trientine-dihydrochloride-trientine/ https://www.gnhindia.com/products/trientine-dihydrochloride-...
- deleted 7y ago[deleted]
- shripadk 7y ago> I discovered this because my sister in law has a rare disease and she depends on a rare drug called syprine. Her drug costs went from 177.00 a month to $8000.00 a month where it hovered there for a year, then it went up to $43,354.73 a month. This is nuts! $43000+ per month is insane! 1. I did a quick check and in India Syprine is available for Rs. 1.5 lakh / pack (which is roughly 2100$ at current exchange rate (Rs. 69 = 1 USD)): https://www.indiamart.com/proddetail/trientine-capsule-syprine-india-17199217455.html https://www.indiamart.com/proddetail/trientine-capsule-sypri... 2. Another brand (non-Valeant; same chemical composition as Syprine) is available at even cheaper rates of Rs. 20000 / bottle (which is roughly 300$ at current exchange rate): https://www.indiamart.com/proddetail/trientine-capsule-250mg-cuchel-20519895597.html https://www.indiamart.com/proddetail/trientine-capsule-250mg... Is it possible to import the drug from India instead? Or is this market highly regulated?
- qes 7y ago> Is it possible to import the drug from India instead? It is, and in my experience it's as simple as just placing an online order.
- hinkley 7y agoEvery year we have celebrities helping raise millions for various medical research projects. Maybe we need someone to set up a nonprofit pharmaceutical company to look at treatments (including vaccines) for chronic illnesses instead of treating customers as cash cows. A partner like this funding university research would be amazing.