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Financial Times — Merck has launched a price war in the treatment of hepatitis C by setting the list price of its new drug at a 40 per cent discount to rival medicines, a move designed to steal market share from a controversial $1,000 pill made by competitor Gilead.
Zepatier, a new once-daily pill from Merck that was approved by regulators on Thursday evening, will be priced at US$54,600 for a 12 week course of treatment, versus $94,500 for Gilead’s Harvoni.
The price paid by the insurers, employers and government schemes that foot the bill for drugs in the privatised US healthcare system will be lower still, analysts said, as these “payers” usually demand large discounts in return for access to their patients.
Merck had little choice other than offering a big discount because its drug has several drawbacks, said analysts; it is not suitable for all hepatitis C sufferers, and it can cause modest liver damage, prompting regulators to insist that patients are tested for liver function before being given the drug.
“We believe the discounted list pricing strategy, before rebates, is necessary in this highly competitive segment,” said Andrew Baum, an analyst at Citi. “While Merck’s hepatitis C agent is clearly inferior to incumbent competitors, we expect the launch of Zepatier to further drive net price reductions for all market participants.”
Robert McMahon, an executive at Merck, described Zepatier as a “highly effective treatment” for a broad range of patients, including some of whom are ill-suited for existing drugs.
See also:
- Payers see price leverage with entry of Merck hepatitis C drug
- Zepatier Press Release from Merck
Source….http://www.ft.com/cms/s/0/cf857ccc-c69f-11e5-808f-8231cd71622e.html#axzz3ygLT4GPN