Is Rx Pricing Healing Itself?

In a world where Al Franken and Donald Trump agree, something had to give.

And maybe it did.   

Teva, a poster child for bad PR around drug pricing, is joining a growing list of Rx companies bringing innovation to market at a discount to current branded therapies and, in this case, even generic ones.  

FiercePharma reported that Austedo, Teva’s new Huntington’s drug, has a list price of $60,000 which is less than 40% of the wholesale price for Valeant’s Xenazine. What may be more surprising is that, at least for now (until they react), Austedo is also priced well below generics.

Teva is not alone. Roche is pricing its new MS drug Ocrevus 25% below Merck’s Rebif despite clinical superiority.

Add in Brent Saunders’ price pledge on behalf of Allergan and it’s starting to feel like a trend.

Remember, the FDA tells us that nearly 8 out of 10 prescriptions are already filled by a generic at an average price 80%-85% lower than branded products. If the ability to price innovation at a premium diminishes, will the industry continue to thrive?

What do you think? And who’s next?