www.fdanews.com/articles/149372-pharma-blog-watch
Pharma Blog Watch
September 11, 2012
Drug Product Pricing 101: A Fundamental Issue Revisited (FDA Matters blog)
Following a “firestorm” 18 months ago revolving around KV Pharmaceuticals’ decision to charge $1,500 per dose for Makena (hydroxyprogesterone caproate injection), the company three months ago filed for bankruptcy. “No one knows the ‘right price’ for this or any other drug, but there are ways to rationally evaluate and guide product pricing decisions,” blogger Steven Grossman writes. “Apparently, not everyone in industry knows this.” Value/pricing analysis helps companies determine an appropriate and defensible price. “However, it seems clear that some companies don’t bother to undertake a sophisticated analysis prior to setting prices,” Grossman adds.
Following a “firestorm” 18 months ago revolving around KV Pharmaceuticals’ decision to charge $1,500 per dose for Makena (hydroxyprogesterone caproate injection), the company three months ago filed for bankruptcy. “No one knows the ‘right price’ for this or any other drug, but there are ways to rationally evaluate and guide product pricing decisions,” blogger Steven Grossman writes. “Apparently, not everyone in industry knows this.” Value/pricing analysis helps companies determine an appropriate and defensible price. “However, it seems clear that some companies don’t bother to undertake a sophisticated analysis prior to setting prices,” Grossman adds.