Monday, May 28, 2007

Drug Pricing - Elan CEO breaks ranks with Big Pharma

Elan CEO Kelly Martin has challenged the pharmaceutical industry to overhaul its commercial model by offering groundbreaking new treatments at lower cost, which he said his company is likely to follow for its Alzheimers treatments.

"The psychology of the industry is that, if you are first, the price should be high," The head of the Ireland-based drugs group told the Financial Times.

"The economic structure is unsustainable. The tension will grow and something has to give."
Referring to the company's medicines to treat Alzheimers disease - which set for launch by the turn of the decade - Martin said there is a commercial advantage to building market share by offering lower-priced drugs over many years.

"We would consider using price as one of the parameters for strategically positioning this company for the long term," he said.

"You need low and flexible infrastructure costs but you can charge less if you continue to innovate."

Source

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