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Pfizer Hikes Price of COVID Antiviral Paxlovid From $530 To Nearly $1,400 (arstechnica.com) 169

Pfizer this week revealed that it raised the list price of a course of Paxlovid -- its lifesaving antiviral drug used to reduce the risk of severe COVID-19 in those most vulnerable -- to nearly $1,400, more than double the roughly $530 the US government has paid for the treatment in the emergency phase of the pandemic. From a report: Pfizer CEO Albert Bourla had noted in an investor call at the beginning of the week that the company would increase the price of Paxlovid as it moves from government distribution to the commercial market at the end of this year. But, he did not announce the new list price then. Instead, the company revealed the more than twofold increase in a letter to pharmacies and clinics dated Wednesday. The Wall Street Journal was the first to report the list price of $1,390 after viewing the letter.

A Pfizer spokesperson told the Journal that "pricing for Paxlovid is based on the value it provides to patients, providers, and health care systems due to its important role in helping reduce COVID-19-related hospitalizations and deaths." A cost-effectiveness analysis last year determined the value of Paxlovid at between $563 and $906 per treatment course, according to nonprofit drug-pricing watchdog The Institute for Clinical and Economic Review.

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Pfizer Hikes Price of COVID Antiviral Paxlovid From $530 To Nearly $1,400

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  • by TomR teh Pirate ( 1554037 ) on Friday October 20, 2023 @12:27PM (#63939829)
    to pay for the advertising blitz coming to your Sunday NFL games
  • They admit it (Score:5, Insightful)

    by spaceman375 ( 780812 ) on Friday October 20, 2023 @12:32PM (#63939843)
    A Pfizer spokesperson told the Journal that "pricing for Paxlovid is based on the value it provides to patients, providers, and health care systems due to its important role in helping reduce COVID-19-related hospitalizations and deaths." As in, pricing is not based even slightly on what it costs to make; it's solely based on how much we think we can gouge out of vulnerable people desperate to not die. Unethical is far too nice a word for these monsters.
    • Re:They admit it (Score:5, Insightful)

      by taustin ( 171655 ) on Friday October 20, 2023 @12:55PM (#63939921) Homepage Journal

      What they said, in plain english, is "We believe we can get this much from people who don't want to die."

      Rather than basing the retail cost on the manufacturing cost.

      It's literally "Give us money or we'll let you die."

      And the current administration will let them get away with it. (The last one probably would have, too.)

      • The difference isn't two parallel worlds, one with expensive new drugs, and cheap new drugs. It's one with expensive new drugs, and far fewer new drugs.

        Medicine isn't a timestamp of technology level, that you then skip around like Johnny Appleseed tossing it out for free.

        It's an ongoing fight against death, the same old foe humanity has had forever, and our worst problem. Remember that other issue you get so bent out of shape over? Yeah, this is worse.

        God knows, I, too, wish for things to magically appea

        • Re:They admit it (Score:4, Insightful)

          by sjames ( 1099 ) on Friday October 20, 2023 @02:07PM (#63940163) Homepage Journal

          Whether it's a dollar or a dime, the greedy man will grasp at it. Why not make it a dime?

        • Which world is the one where Paxlovid's advertising budget absolutely dwarfs its development costs.

      • I believe the proper economic term for that kind of pricing is "what the market will bear."

      • Re:They admit it (Score:5, Insightful)

        by fropenn ( 1116699 ) on Friday October 20, 2023 @03:08PM (#63940359)
        Each private insurer and Medicaid / Medicare will now negotiate the rate for their patients (probably about half or less). The $1,400 will only be for those who have to pay out of pocket.
        • by taustin ( 171655 )

          Your point? It's still "Give us money or we'll let you die."

          • Your point? It's still "Give us money or we'll let you die."

            You must be new to health care. It may be the patient, their insurance company, or a single-payer like government that pays the bills, but everyone in the system from the pharma companies, the doctors, on down to the people who clean bedpans and do laundry do expect to get paid.

            • by taustin ( 171655 )

              Paying living wages is part of the cost of manufacturing the drugs.

              They're not basing the retail price on the cost of manufacturing the drugs. They said they're not. They said they're basing in on what they can make people pay. They literally said "Give us as much money as possible or we'll let you die."

              That's their statement. Suck their dicks all you want - and you know you want to - they're still profiteering on people's deaths.

        • Re:They admit it (Score:4, Insightful)

          by Torodung ( 31985 ) on Friday October 20, 2023 @09:41PM (#63941147) Journal

          TL;DR: It's a legally sanctioned scam.

          Starting mildly off-topic here, but let me share an anecdote about treatment costs and the insurance industry. I'm making a case for how crooked it all is.

          I got a CAT scan of my jaw recently. My insurer refused to let my TMD's (TMJ doctor) provider do it. They insisted I go to their hospital instead. I boggled. Do it in a hospital? These guys had a portable CAT, at their office, that was going to cost a very economical ~$400. They were ready to do it right then and there. A hospital charges three times that, and it takes weeks to schedule it.

          Sure enough, at the hospital it is listed as around a $1,200 procedure (nailed it) for someone paying out of pocket. In my insurer's network at their hospital? Their negotiated discount was around $900, because it's their hospital. Which boils down to a $300 CAT scan. Hurry up and wait, and we want your money in our system. Screw cost-effective. Screw advances in medical equipment (the CAT was ancient). Screw convenience. Screw the medical consumer.

          I suffered severe, cannot chew plus migraines, jaw pain for weeks because I couldn't get started on an orthotic until the CAT was taken. That's why it's at the TMD's office. That's why it has a reasonable price and convenience. I should have just paid for it fully out-of-pocket, but I didn't know what was going on. Next time I'll know better because, a week after getting that orthotic, the pain had mostly resolved.

          The insurance industry loves this stuff. They keep charging higher and higher premiums based on out-of-whack list prices, like exaggerating the square footage of your condo, and they use this to lock insurance into being a mortal necessity rather than a means of hedging your bets against big medical expenses. And I have really good health insurance through the state. Most people aren't nearly as lucky.

          So out of pocket is rigged, and it's rigged to raise your premiums. Back on the topic of drugs now...

          In the case of drugs, the various manufacturers have "discount cards" for their latest drugs. Their drugs cost, say, $1,600 a month plus, up to and including 10s of thousands of dollars. Insurance companies will make a healthcare consumer pay 10-20% of that, because it's non-formulary and hella expensive. So for that $1,600 drug a $160-$320 out of pocket for the consumer is normal, even with a Cadillac plan. This inhibits uptake in the use of the drug in the market. The "discount card" gets you down to, say, a $10-20 copay. The manufacturer is literally eating $150-$300 for months (6 to a year) off that list price, They don't care. It's overpriced and they know it. That "discount card" is actually an adjusted market correction card. Then the discount card expires and you still need this treatment, and all of the sudden you're on the hook for your full contribution to list price. It's legal "first one's free." The manufacturer demonstrated they clearly did not need the money for an entire year, perhaps never. It's the ultimate in "too good to be true."

          For one of my drugs, the discount program never expired until it went generic. In that case, it was a $1,600/mo. drug, which is why I chose that price example. Generic cost $1,200/mo., the real price for the drug, but still profit-mongering to be sure. Now my insurer is giving me it for a $5 copay. Before generic, I needed a pre-auth and was slated to pay 20%. So my insurer is screwing me until it goes generic, but they're basically paying the same thing for my use of the drug afterward. Then the generic drops to $500 in a few years to increase usage. So a $1,600 drug that actually costs $1,200 at market rate, and then drops to something a bit more reasonable after a year or two. And screw you if it's a good drug for you and you don't have the right insurance. You can't pay $500 for it.

          Read your EOBs guys and then actually try to do something to lower costs for your insurer when you see the crazy numbers involved. You literally can't. Market forces are not in effect here.

          What these guys should get in return for these coordinated behaviors is a RICO prosecution, not higher premiums.

      • by rsilvergun ( 571051 ) on Friday October 20, 2023 @04:02PM (#63940535)
        at least not for anyone not on Medicare. For Medicare they'll negotiate a lower price because the current Admin passed a law allowing Medicare to do that. For everyone else, well, you don't get Medicare, so you're gonna pay what you're gonna pay. That has less to do with the "current administration" and more to do with the Congress voters gave him.
      • by gtall ( 79522 )

        Let them get away with it? What they are doing is perfectly legal in the U.S. What law, to be precise, do you wish to charge them with violating?

        The problem in the U.S. is how we pay for medicine via the free market. Any product is priced at what people will pay to get it, drugs (legal and illegal) are no different.

        • by Torodung ( 31985 )

          RICO. There is a coordinated effort by all the different arms of the healthcare sector: pharma, treatment centers, emergency services, and insurance. They all exaggerate prices and then cut deals with each other for the real prices and then base your premiums on the inflated prices they list. And no doctor can give a true out-of-pocket discount for someone who doesn't have insurance. It's either not legal or will get them dumped by an insurer if they notice, depending on what's happening. So mandated health

    • A Pfizer spokesperson told the Journal that "pricing for Paxlovid is based on the value it provides to patients, providers, and health care systems due to its important role in helping reduce COVID-19-related hospitalizations and deaths." A cost-effectiveness analysis last year determined the value of Paxlovid at between $563 and $906 per treatment course

      A different way to interpret this statement is that Pfizer has set the value of a human life under $1000.

      • by Torodung ( 31985 )

        They have set it quite a bit higher. The value of a human life is the sum total of all of their lifetime healthcare costs, not the cost of a single drug.

        Go ahead and oversimplify for impact, but health care is a lot harder than that.

      • Seems fair ... it's about the same worth as having a child to the IRS

    • Re:They admit it (Score:5, Insightful)

      by sjames ( 1099 ) on Friday October 20, 2023 @01:19PM (#63940009) Homepage Journal

      This is why healthcare cannot be responsibly left to market forces. There is no effective competition to invoke market forces.

      • This is why healthcare cannot be responsibly left to market forces. There is no effective competition to invoke market forces.

        Hmm? Pfizer can do this because the Government allows it. It's not a "free market" situation. They've eliminated competition by handing out monopoly privileges to pharmaceutical companies. This is why healthcare cannot be responsibly left to government forces.

        • Re:They admit it (Score:4, Interesting)

          by Required Snark ( 1702878 ) on Friday October 20, 2023 @03:39PM (#63940451)
          Government doesn't "allow it." Lobbyist swarm Congress, vast amounts are spent on lying public relation campaigns, and bribes, aka political donations, go into the pockets of the people writing the laws. It's raw corruption at work, even if it is technically legal. And it works. Blaming "duh gumment" ignores who is really culpable.
        • Re:They admit it (Score:4, Interesting)

          by sjames ( 1099 ) on Friday October 20, 2023 @05:22PM (#63940711) Homepage Journal

          Good luck repealing copyrights, patents, and the many safety regulations that interlock to block entry to the market.

          That and the ever present threat of snake oil.

          It used to be much less regulated, then a bunch of kids were dosed with antifreeze and died.

      • >"This is why healthcare cannot be responsibly left to market forces. There is no effective competition to invoke market forces."

        As a blanket statement, that is not true at all. But you can pick certain PARTS of it, like patented medications, and say there is no effective competition. If consumers have to actually pay for things, and there are choices, then healthcare costs plummet. When they are fully "covered" and don't have any skin in the cost and make no decisions, prices rise. Often, insurance

        • by sjames ( 1099 )

          Patents are only part of it (but there's an amazing number of patents there). There's also back room deals to keep generics off the market, very expensive testing for what would be a low margin generic, etc.

          add in that few consumers are even vaguely qualified to determine what drugs should be used to treat any given condition. It's not like shopping for a good deal on a mattress.

    • by gweihir ( 88907 )

      Oh, it will be based on what it costs to make as well, in that the cost to make it will be a lot lower. They will never ask the price based on "value" if that gives lower prices.

      The whole statement is a statement of pure evil, nothing else.

    • First lesson in economics I got at university. You set the price to what people are willing to pay for it. Not cost + profit. If there is little competition and your product is very desired then you set it as high as possible. Of course, there is more to life than economics. But our brains can only focus on a few things.
    • They are in a position of power. They have a patent, so they can set the prices.

      Positions of power like this are attractive to greedy, evil people. For some people, attaining this kind of power and wealth is truly their only motivation. They focus their entire lives on getting into such positions, and have no inhibitions at all about playing dirty pool any time they think they can get away with it.

      So, even if you removed these greedy bastards from this position, their replacements will be just the same.

      • by dryeo ( 100693 )

        As bad as this system is, there IS a silver lining on that cloud. Their ability to price-gouge like this gives them tremendous incentive to invest loads of RnD money into developing medicines that actually work. The "actually work" aspect of the medicines is what makes people want it, and thus provides the profit incentive. When RnD like this is funded by taxpayer dollars, the whole enterprise takes on a much more bureaucratic character, which results in tremendous amounts of taxpayer money wasted on ideas that show little promise. It's hard to keep projects like this in the budget.

        Actually it allows them to invest in advertising and other forms of propaganda, though they do pay for the safety trials of the publicly researched drugs.
        https://www.cbc.ca/news/health... [www.cbc.ca]

    • Paxlovid is priced based on, "How strong is your will to live?"
    • Indeed I damn near fell out of a my chair when I read that. Such refreshing honestly in a "fuck you, pay me" kind of way.

      Someone is getting fired for that.

    • by mspohr ( 589790 )

      The medical industry often uses "your money or your life" pricing.
      How much is your life worth?

  • by rsilvergun ( 571051 ) on Friday October 20, 2023 @12:32PM (#63939847)
    So we have large swaths of people who aren't going to get vaccinated. Even if they have insurance the kind of crummy insurance plans they're stuck with will fight against paying it. Meaning we'll have a large part of our population avoiding vaccination not just for crazy but because of cost. Every one of which is a breeding ground of new variants.
    • How's the vaccine $120? As far as I know, they're still having insurance companies pay for it, have government programs, etc... I'm getting my vaccine for it next week for free, as long as they still have it in stock.

      Crummy insurance plan or not, they want to pay for it, because it's cheaper than the alternative.

      In this case, a drug that costs $1400 now.

      Consider the odds:
      Vaccine reduces the chance of hospitalization level covid like 90%.

      Odds of getting covid(eventually) if you're not vaccinated: Nearly

      • >"How's the vaccine $120? As far as I know, they're still having insurance companies pay for it, have government programs, etc... I'm getting my vaccine for it next week for free, as long as they still have it in stock."

        My mother got the current COVID-19 vaccination two weeks ago at a local pharmacy. They charged Medicare $200 for it. And $100 for the flu vaccination (she paid $0 for both). Now, would that be the same price with commercial insurance or no insurance, I don't know.

        I have no current inte

    • Comment removed based on user account deletion
      • > In the post Affordable Care Act world, insurance is required to cover vaccines and other preventive treatments at $0 out of pocket

        The fact that insurance will pay for the vaccine with $0 out of pocket is of little comfort to the 1 in 12 Americans of all ages who do not have health insurance...
        =Smidge=

        • Re: (Score:3, Informative)

          Comment removed based on user account deletion
          • > Whose fault is that

            Since Medicaid is administrated at the state level, probably Republicans...

            > If you're still uninsured in America that's pretty much by choice

            Bullshit. For starters, the national average for qualifying for Medicaid is 138% of the Federal poverty level, not 300%. And the actual threshold varies by state because, again, Medicaid is administrated at the state level.

            If you live in Alabama, for example, to qualify for Medicaid as a single individual you need to have an income under $93

    • Citation?

      Obamacare requires preventative vaccines to be free of copays.

      Vaccines continue to be free of charge when delivered by an in-network provider.

      https://www.healthcare.gov/cor... [healthcare.gov]

    • by gweihir ( 88907 )

      That expensive? I am getting the current variant next week at $80 total cost and I only have to pay because I am not really in a group with elevated risk (then it would be free). Of course, that is in Europe...

    • More variants means more demand for vaccines. Sounds like pfizer disovered the cheat code that activates the infinite money glitch.

  • by Walt Dismal ( 534799 ) on Friday October 20, 2023 @12:39PM (#63939871)
    The Pfizer spokeperson then snarled "Close that curtain! I have.. an allergy to sunlight!" He then laid down in a coffin filled with dirt from his native land and clutched a tiny bat doll.
  • I thought the outrage brought on by Pharma Bro would have had some kind of preventative effect of this kind of price gouging.

    Ah well, I guess rampant greed and unregulated capitalism is still alive and well...

  • Is what they actually wanted to say. But since that sounds really immoral and evil, they create the illusion that there is a "market" (there is not) that "values" this product as it is priced now (only because whoever needs it has no alternatives).

  • by WaffleMonster ( 969671 ) on Friday October 20, 2023 @01:35PM (#63940071)

    ". There was no significant difference in mortality from any cause at 28 days between the Paxlovid plus standard treatment group and the standard treatment group (absolute risk difference [ARD], 2.27; 95% CI â'2.94 to 7.49, P = 0.39). There was no significant difference in the duration of SARS-CoV-2 RNA clearance among the two groups (mean days, 10 in Paxlovid plus standard treatment group and 10.50 in the standard treatment group; ARD, â'0.62; 95% CI â'2.29 to 1.05, P = 0.42). The incidence of adverse events that occurred during the treatment period was similar in the two groups (any adverse event, 10.61% with Paxlovid plus standard treatment vs. 7.58% with the standard, P = 0.39; serious adverse events, 4.55% vs. 3.788%, P = 0.76)."

    https://www.thelancet.com/jour... [thelancet.com]

    • by dgatwood ( 11270 )

      ". There was no significant difference in mortality from any cause at 28 days between the Paxlovid plus standard treatment group and the standard treatment group (absolute risk difference [ARD], 2.27; 95% CI â'2.94 to 7.49, P = 0.39).

      *blinks*

      Usually articles in the Lancet are pretty solid, but this immediately sets off red flags. If the number of deaths in your sample population is single-digit, your confidence interval has a factor of 2.5 between the two ends, and a 37.5% reduction in deaths isn't statistically significant, that means that your sample size is too small to be meaningful, and you need to stop writing your paper immediately and get a larger data set.

      There was no significant difference in the duration of SARS-CoV-2 RNA clearance among the two groups (mean days, 10 in Paxlovid plus standard treatment group and 10.50 in the standard treatment group; ARD, â'0.62; 95% CI â'2.29 to 1.05, P = 0.42).

      This one, of course, proves that it is probably very nearly useless as a

  • Hindsight is 20/20 but one of the things I didn't understand about the behavior of the government during the pandemic was the willingness to sort of do a business as usual with pharmacy firms. I am not normally

    I think the US should have bought the patents of the initial mRNA vaccines and related therapies like Paxlovid. Pay a fair price, but also make Pfizer an offer they couldn't refuse. I'm not normally into the govt getting to run roughshod over private firms, but two cases....war and pandemic seem

  • for-profit vaccines seem like a bad idea after this.
  • That way it costs the same to all. Fuck the corporate vampires.
  • ...it's time to start seizing assets. Governments have the power to acquire property for public use when it serves the public good. I think this qualifies.

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