Johnson & Johnson to Report Average Increases in List Prices for U.S. Drugs
January 10 2017 - 12:29AM
Dow Jones News
By Jonathan D. Rockoff
Johnson & Johnson is planning to issue a report next month
outlining how much it has raised the U.S. prices of its
prescription drugs, the latest pharmaceutical company effort to
address intense public concern about the cost of medicines.
The report will give the average increase in the list prices for
all company drugs in the U.S., as well as their average price after
the discounts given by the company, J&J officials said. The
report will also show that J&J spends more on research than
marketing, and about two-thirds of its sales growth comes from
selling more drugs, rather than raising their prices.
"We are a responsible actor in health care. We try to balance
the interests of all the stakeholders and look to the long term,"
said Joaquin Duato, a J&J executive who helps run its
pharmaceuticals business.
J&J hopes the report will show that it raises prices by
reasonable amounts, thereby helping address public concerns about
aggressive price increases. Criticism of the industry from
lawmakers, payers and patient groups has grown and led to
congressional hearings. Mylan Inc. was the one of latest drugmakers
to face public scrutiny, over its EpiPen allergic reaction
treatment.
But J&J's report may not satisfy critics because it will
provide only an average across all the company's drugs. The company
said an average is all it can provide without undermining its
negotiations with payers.
Allergan Inc. and Novo Nordisk have also taken steps to address
pricing concerns, with pledges last year to limit increases to less
than 10% a year. Allergan also expanded its patient assistance
programs as part of the "social contract" it announced in
September.
"What I hope to prove is you can achieve a balance between
earning a return to invest in innovation and making your medicines
affordable and running a first-class biopharmaceutical company,"
Allergan Chief Executive Brent Saunders said in an interview
Monday.
Mr. Duato said J&J didn't see the need to set a similar
price limit because it already keeps increases to single-digit
percentages for list prices and the low single-digits for increases
after discounts.
J&J's "U.S. Pharmaceuticals Transparency Report" will also
address other subjects of public scrutiny, such as saying how much
the company pays to physicians and how many patients are getting an
experimental medicine from the company even if they aren't in a
clinical trial for the drug, Mr. Duato said.
Write to Jonathan D. Rockoff at Jonathan.Rockoff@wsj.com
(END) Dow Jones Newswires
January 10, 2017 00:14 ET (05:14 GMT)
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