Healthy Skepticism Library item: 4508
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
Masters C.
Counting cost of super drugs
The Daily Telegraph (Australia) 2006 Apr 22
http://www.dailytelegraph.news.com.au/story/0,20281,18884915-5001022,00.html
Notes:
Ralph Faggotter’s Comments:
It is curious that health consumer lobby groups always accuse the health authorities in their respective countries of failing to supply the necessary funding for incredibly expensive new drugs, rather than focusing their interest on the pharmaceutical company which is demanding the outrageous price in the first place!
Full text:
Counting cost of super drugs
By CLARE MASTERS Health Reporter
April 22, 2006
THOUSANDS of seriously ill patients could be bankrupted by the high price of a new era of drugs which cost users up to $100,000 a year.
Genetically targeted anti-cancer drugs offer a new and radical treatment of chronic conditions but experts predict they are unsustainable under the Federal Government’s PBS scheme.
The breast cancer drug Herceptin was one of the first to be developed and is breeding a new generation of drugs to treat other debilitating and often fatal conditions.
Unlike conventional treatments that blast both cancer cells and healthy cells, biological drugs target only cancerous markers, stopping them from reproducing.
While clinical trials have proven in the short term these drugs can have an astounding effect, they currently cost patients between $20,000 and $60,000 for a year’s treatment.
With the revolution expected to continue, experts say the PBS needs to be restructured to allow for the high costs, or regulate the pharmaceutical industry and lower prices.
“If we don’t find a way to develop drugs more cheaply, they will be outside the reach of many,” University of Queenland professor of public health policy Wayne Hall said.
“Unless the Government chooses to subside, (they) will put severe strain on the PBS.”
The Pharmaceutical Benefits Advisory Committee advises the Government. Chairman Professor Lloyd Sansom said the current system is working.
“Of course the biologicals will be difficult to maintain which is why we need to maintain cost-effectiveness as the criteria and maintain some restricted access,” he said.
Experts say reform is needed in the pharmaceutical industry where big ticket oncology drugs are reaping millions in profit.
Drug company Roche has reportedly seen a 48 per cent rise in profit for 2005 from the sales of Herceptin.
Drug companies say it costs about $1 billion to produce a drug, including the cost of research and development.
But Newcastle University Professor David Henry said pharmaceutical companies are holding sick people hostage.
“You have to question whether these very rich drug companies should be profiting by charging such high prices for some of the sickest people in the community,” Professor Henry said.
