Sanofi and Regeneron’s plan to cut the prices of its cholesterol-lowering drug Praluent could produce more robust market performance, higher access to the treatment and lower costs, but what if their gamble doesn’t pay off?
The drugmakers’ efforts to drop the price to $4,500-$8,000, a price range recommended by the Institute for Clinical and Economic Review, is in direct response to its disappointing market performance.
Bloomberg Gadfly Columnist Max Nisen calls it a “sensible move,” but if the plan busts, the results could be more detrimental.
“If payers aren’t willing to make major access concessions, then there may not be major price cuts,” Nisen writes. “The price gap between Praluent and older drugs will remain very high even after these discounts. A retaliatory price cut from Amgen seems likely, and the resulting price war may hurt profitability.”
To read Nisen’s full column on Bloomberg, click here.
