The huge price hike as sales strategy, taken to extremes by Retrophin
This isn’t the first time a company has taken an older product and moved its price into new-launch territory. KV Pharmaceuticals ($KV.A) may be the most notorious: It put an old standby hormone treatment for preterm labor through some new tests, rolled it out under the brand name Makena, and jacked up the price to $1,500 per injection. The previous price was about $20 per, as sold by compounding pharmacies.
We could also tell you about Colcrys, a branded version of the ancient gout-fighter colchicine, which URL Pharma tested, put through FDA review, and started selling at more than $5 per pill, up from just pennies. Thanks to FDA approval, it no longer faced competition, either. That price hike was scandalous enough to inspire politicians to demand explanations.
American citizens, are consuming older renamed chemicals, that were sitting stagnant on a pipeline and clearly questionably unsafe. Along with after renaming the older drug surprisingly, it becomes expensive to purchase in the U.S., and clinically proven by the FDA? Again, there are some confusing business practices occurring that aren’t safe for U.S. citizens!