SNY Sanofi

By Joseph Walker 

Regeneron Pharmaceuticals Inc. and Sanofi S.A. said they will charge $37,000 annually in the U.S. for their newly approved eczema drug, a price the companies said they reached after months of negotiations with pharmacy benefit managers.

The Food and Drug Administration approved the drug, called Dupixent, for U.S. sale on Tuesday.

Through their negotiations, the companies said they aimed to set a price the pharmacy benefit managers, or PBMs, would find acceptable. PBMs administer prescription drug benefits for employers and insurers.

In exchange, the companies sought, and in some cases received, assurances that the PBMs wouldn't implement coverage restrictions that could prevent patients from getting the drug, Regeneron CEO Leonard Schleifer said in an interview.

Dupixent will be one of the most closely watched drug launches this year, with analysts projecting it could reach $3.13 billion in global annual sales in 2020 if it gains favorable insurance coverage, according to analysts polled by FactSet.

--Denise Roland contributed to this article.

(END) Dow Jones Newswires

March 28, 2017 12:11 ET (16:11 GMT)

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