[Ip-health] US Congressional Hearing Attacks Price Gouging

[Judit Rius Sanjuan]

Congressional Hearing Attacks Price Gouging
By Ed Silverman // July 25th, 2008
Pharmalot

Why has the cost of some drugs skyrocketed? That=92s the question the
Joint Economic Committee explored at a hearing yesterday in which some
specialty pharma companies were skewered for raising prices
dramatically after buying meds from larger drugmakers.

Among those cited were Ovation Pharmaceuticals, whose ceo, Jeff
Aronin, is a PhRMA board member. In her opening remarks, US Senator
Amy Klobuchar, a Democrat from Minnesota, indicated she asked the
Federal Trade Commission to investigate Ovation for allegedly
exploiting a lack of competition to one of its products. Another
company cited was Questcor Pharmaceuticals.

=93When we have pharmaceutical companies like Ovation or Questcor
increasing prices to astronomical levels because of the lack of
competition in the market, their actions are able to exploit an
extremely vulnerable and captive market,=94 she said. =93These
staggeringly high prices, in turn, threaten the financial stability of
middle class families relying on these drugs.=94

Alan Goldbloom, ceo of Minnesota Children=92s Hospital, testified that
Ovation=92s Indocin is an example. The drug is used to treat patent
ductus arteriosus, or PDA, a condition that can interfere with
breathing in newborn and premature babies. Until January 2006, the
drug cost about $108 per unit. A few months earlier, though, Ovation
bought the med from Merck, gaining exclusive rights, and the price
jumped to $1,500 =96 a 1,278 percent increase.

=93Indocin is not the only drug Ovation has marked up in such a dramatic
fashion,=94 he continued. =93Three other drugs that were purchased from
Merck =96 Cosmegen, Diuril Sodium, and Mustargen have seen price
increases of 3,437 percent, 864 percent, and 979 percent,
respectively. Cosmegen is an agent used to treat a variety of
pediatric cancers, Diuril Sodium is a diuretic used to reduce fluid
overload in infants and neonates, and mustargen is used to treat brain
tumors and certain lymphomas.=94

You can read testimony and watch the hearing right here: http://jec.senate.=
gov/index.cfm?FuseAction=3DHearings.HearingsCalendar&ContentRecord_id=3D4b4=
0a6a9-9445-145b-51f4-492c9a16b85b



Judit Rius Sanjuan
Attorney
Knowledge Ecology International / Essential Information
www.keionline.org / www.cptech.org
Phone: +1.202.332.2670, x18