Last month, for instance, Pfizer introduced a new card that can reduce the co-pay on its blockbuster drug Lipitor to $4 a month, a savings of up to $50. That brings the out-of-pocket cost in line with what consumers might pay at Wal-Mart for a generic version of a competing cholesterol-lowering drug.Ok, maybe I'm just being exceptionally obtuse, but if the drug companies themselves are subsidizing the cost of these cards, doesn't that suggest that the overall cost of the drug is artificially high? I mean, if they can afford to give it away at a fraction of their "cost" for an extended period of time to keep people from going to similarly inexpensive generics, and still remain profitable, isn't that a pretty clear example of the market saying that that's what that drug should cost?
"Biovail Corp., a large Canadian drug company, has been paying as much as $1,000 each to thousands of doctors in the U.S. prescribing the company's new heart medication. ... The strategy, part of Biovail's effort to launch a medicine called Cardizem LA, underscores how some companies aggressively market their drugs to doctors. ... And some heart specialists say the Biovail is no more effective than much-cheaper generic versions of a similar drug."Biovail's marketing strategy was very successful because it not only paid doctors, but also office managers to help push its product. And, of course, Biovail did not require doctors to inform patients of the compensation they received.
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posted by 2bucksplus at 1:18 PM on January 25, 2011