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Pharma Under Fire Over Pricey Drugs for Kids

Lawmakers lash astronomical hikes in drugs for rare diseases

By Green Point,  Newser User

Posted Jul 27, 2008 7:37 AM CDT

(Newser) – In the face of astronomical hikes in the price of drugs used to treat children, a congressional committee is looking into why companies have increased prescription costs as much as 18-fold when related research and marketing expenses are stable, according to lawmakers. One such company charges $69,000 for a three-vial drug treating infantile spasms—while a $15 alternative exists, reports Portfolio.

Corporate executives say price hikes increase availability of orphan drugs—those that treat very rare diseases—and also cover research expenses, as the long-term effects of some of these drugs are unknown. But politicians suspect the boost is largely due to corporate greed. Questcor, maker of the spasm drug, spends only 9.5% of its sales revenue on research and innovative drug development.

The federal government's Orphan Drug Act deals with drugs treating rare diseases. Companies say hike the prices of orphan drugs to afford researching their long term effects.
The federal government's Orphan Drug Act deals with drugs treating rare diseases. Companies say hike the prices of orphan drugs to afford researching their long term effects.   (AP Photo/Mark Lennihan)
Questcor company said orphan drug prices rose from $50,000 to $500,000 in a single year.
Questcor company said orphan drug prices rose from $50,000 to $500,000 in a single year.   ((c) tomsaint11)
The mother of a sick child will be testifying against the companies: I feel they're going to soak every penny if they can get it.
The mother of a sick child will be testifying against the companies: "I feel they're going to soak every penny if they can get it."   ((c) plasticrevolver)
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