Senate Report Slams Drug Makers’ “Predatory” Pricing Model
December 26, 2016
(Managed Care Magazine) – In a new report, the Senate’s Special Committee on Aging examines the business model used by these companies; assesses the impacts of price hikes on patients, payers, providers, hospitals, and governments; and discusses potential policy responses. The committee discovered that each of the four companies followed a business model that enabled them to identify and acquire off-patent sole-source drugs, over which they could exercise de facto monopoly pricing power, and then impose and protect huge price increases. The business model consists of five central elements.