Expensive Medicines by Gilead Sciences (NASDAQ:GILD)
The expenses of healthcare are one of the main reasons for bankruptcy these days, so it comes as no surprise when people get extremely worked up over the costs of medicines like Harvoni which is one of the most recently launched medicine by Gilead Sciences (NASDAQ:GILD). But there are some other drugs which make Harvoni seem like a cheap drug. Over the previous decade, Novartis (NYSE:NVS) has rapidly increased the cost of Gleevac and now, it is about three times its initial price.
In an offer to protect itself from the expiration patent of Gleevac and to secure billions of dollars in income, Novartis set the cost for Tasigna at a shocking $102,000 a year. Despite the fact that Gleevac’s cost is nothing as compared to Tasigna, the expenses don’t seem to matter much. In the third quarter, the sales of Tasigna in the U.S. increased by 27% as compared to the sales in the last fiscal year to $141 million and the sales in the rest of the world increased by 25% to $250 million.
Bristol-Myers (NYSE:BMY) which is another pharmaceutical company, makes about $30,000 for every infusion of Yevroy which is a cancer drug. Because a course of Yervoy incorporates four injections, Yervoy at $120,000 is about 27% more expensive than an entire course of Harvoni. Yervoy was the first new pharmaceutical endorsed for treating advanced melanoma in more than 10 years and was achieved as a result of a long haul study.
Its study was presented last year which demonstrated that 22% of 1,800 Yervoy patients concerned were still alive after three years of treatment, and 17% had survived for seven years. Subsequently, the prices and enhanced viability is transforming Yervoy into one of Bristol’s blockbusters. In the third quarter of this year, Yervoy’s sales increased by 47% from last year to $350 million.
Kadcyla, by Roche (NASDAQOTH:RHHBY) which is a drug for patients with breast cancer was regarded for its adequacy last year in the treatment of malignant tumors but was noticed much more because of its soaring price. The expense of Kadcyla aggregates around $144,000, which is about 52% higher than the cost of Harvoni. Among other expensive drugs by Roche (NASDAQOTH:RHHBY) are Perjeta, which costs about $91,000, and Avastin, which generally costs about $40,000.
Even though clinical studies have demonstrated that Kadcyla can increase lives by an extra six months, price controllers in the United Kingdom don’t really seem to care for that. National healthcare services in England and Scotland have concluded that they won’t be paying for such costly medication because its advantage doesn’t really support its cost. That choice provoked more than 30,000 individuals to sign a request asking Roche to cut its cost.
U.K. controllers are known for being strict in arranging medication costs and it wouldn’t come as a surprise if Roche inevitably offers them a rebate. In any case, Kadcyla’s high cost and ever increasing demand has prompted sales to increase by 148% through the initial nine months of this current fiscal year to $385 million.