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After two years of controversy over the cost of hepatitis C treatments, the fast-growing market is poised to undergo a price war.
Late Thursday, Merck received Food and Drug Administration approval for its Zepatier medication and set a list price of just $54,600 for a 12-week course of treatment. This is considerably lower than the cost of rival medicines that have helped spark national outrage over prescription drug pricing.
By comparison, the list price for the Harvoni drug sold by Gilead Sciences is $94,500, while AbbVie charges $83,300 for its Viekira Pak for 12-week regimens. List prices, however, do not reflect any rebates, which can vary. Despite receiving such partial refunds, though, many insurers and government health programs have restricted coverage of these treatments in order to contain costs.
By setting a much lower price, Merck is moving quickly to grab market share. The strategy is helped by the fact that its once-daily, single tablet is equally effective as Harvoni, although doctors should watch for raised liver enzymes and may want to test patients for resistance to the treatment. Merck’s Zepatier is also more convenient to use than the AbbVie treatment, which consists of two pills for most patients.
Read more of this excellent analysis from Pharmalot here: http://www.statnews.com/pharmalot/2016/01/29/merck-hepatitis-c-price-war/