Pricing insight

Everyone is very aware of the rising costs of drugs over the years. Some cancer medications cost thousands of dollars per month, and they aren't getting cheaper. But why are drugs so expensive and continue to get expensive? In other markets, competition/innovation drives down cost (think HDTVs, Laptops, etc), but this doesn't seem to be the case in the pharma world. When there are new "me too" cholesterol drugs developed, the others all of a sudden don't start a bidding war with patients. It's a very interesting and frustrating problem for patients, health care providers, and insurers. An article was just published recently that discusses the issue of rising drug costs with a surprising conclusion. Check it out below, and I'll give you a hint, it doesn't seem to be what's best for consumers...

BNet Article on Drug Prices

Now, back to our regularly scheduled programming. First up: the FDA is reviewing the JUPITER study to evaluate the risk-benefit ratio of Crestor. Initial reports from an advisory looks good for AstraZeneca and the statin that has reached rockstar status with all the data from this study. With nothing rally bad to say except that more long-term safety data was needed (standard fare for the Agency), but Crestor's benefits seem to outweigh any safety risks. Great news for AZ as they seek an expanded indication for Crestor, which will likely keep revenue flowing over the next few years. If you're interested, here's some nuggets for you:

Reuters article on the FDA review

Pre-Meeting material about Crestor for the FDA

GSK continues its push into new markets by jumping on board with Intercell, the Austria vaccine manufacturer. GSK's interest here is the needleless vaccine platform...yes you read that right. Intercell is developing a vaccine that is delivered through a patch and right now they are in the midst of clinical testing for an influenza vaccine as well as a traveler's diarrhea vaccine (as well as other standard shots). There are numerous potential benefits to a patient for a vaccine delivered transdermally, but the most surprising thing to me is that it actually seems to work! Watch Intercell closely, this partnership cannot hurt them as development progresses...

Pharmatimes article on GSK-Intercell

and more from the Triangle Business Journal

Finally, Intercell's pipeline

Remember the Facet-Biogen drama where Biogen made a "final offer" to buyout Facet? Well, Facet's board of directors said no to the takeover bid, claiming it was too low. Not a smart move for Facet, in my opinion. They need to find additional financing options soon, and Biogen's offer would have provided that much need cash flow.

Read it here