Healthy Skepticism Library item: 18321

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Silverman E
Vaccine Makers Accused Of Anticompetitive Pricing
Pharmalot 2010 July 6
http://www.pharmalot.com/2010/07/vaccine-makers-accused-of-anticompetitive-pricing/

Full text:

A watchdog group has asked the Federal Trade Commission to investigate contract pricing arrangements that Merck and Sanofi-Pasteur offer physician practices. In a letter to the FTC, the Citizens for Responsibility and Ethics in Washington allege the vaccine makers offer docs significant discounts, but only after signing contracts prohibiting them from purchase vaccines made by rivals.
To make its case, CREW cites memos and emails written by four different physician groups in which its doctors are reminded to purchase only vaccines from Sanofi-Pasteur or Merck if they want to obtain the best prices. The vaccines include Merck’s Gardasil for HPV, Rotateq for rotavirus, and Recombivax for hepatitis B, while the Sanofi vaccines include several products, notably Menactra for meningitis.
CREW argues that the contracts bar docs from offering alternatives that may be better for patients and cite Novartis’ Menveo faccines for meningitis as an example. “No one should have to question their physicians’ motives,” says CREW executive director Melanie Sloan in statement. “But the practices of companies like Sanofi Pasteur and Merck suggest we should all be questioning our doctors closely about why they chose a particular vaccine.” Here is one internal memo cited by the group…
“Both of our agreements (Sanofi-Pasteur and Merck), contain pricing discounts earned by the collective membership maintaining purchases of the core product portfolios. Deviation from this will put the entire contract at risk and have negative impact on our ability to offer you (our members) the best available upfront discounts on vaccines,” writes Ann Manning, director of the Cumberland Pediatric Foundation, which is based in Tennessee. “…Please know that by your participation in the Merck/Sanofi vaccine contract, you cannot also particpiate in a GSK or Novartis contract.”
Another example: “As most of you know, the agreement PCA has with Sanofi-Pasteur requires our members to exclusively use their meningococcal vaccine Menatra. Our agreements with the manufacturers are the reasons why we can offer vaccines at such a great price,” writes Amy Dahl, contract administrator at Primary Care Alliance, which is based in Utah.
We are awaiting word from Sanofi-Pasteur and Merck, and will provide an update with any responses that we receive. UPDATE: At 4:30 pm EST, a Sanofi spokesman sends us this statement: “The contracts that we enter into with various buying groups and group purchasing organizations offer real value to those who choose to buy our vaccines, but customers are certainly able to purchase competitive vaccines, should they so choose. These contracts comply with all applicable laws, rules and regulations.”