Ireland-based Allergan, the maker of such products as Botox, plans to raise prices no more than once per year and, when it does, they will be limited to single-digit percentage increases, Mr. Saunders said Tuesday in a blog.
“Our expectation is that the overall cost of our drugs, net of rebates and discounts, will not increase by more than low-to-mid single digits percentages per year, slightly above the current annual rate of inflation,” he said.
Mr. Saunders made the promise as part of Allergan’s social contract with patients.
Without specifying names, he said some “outlier” drugmakers have made dramatic price increases, which has “shifted attention away from the increasingly vibrant medical innovation ecosystem focused on finding new medicines, improving outcomes for patients and, by doing so, lowering the overall cost of disease.”
Allergan’s new social contract includes four principles: invest and innovate, access and pricing, quality and safety and education.
Read the company’s full social contract here.
More articles on supply chain:
6 things to know about carfentanil: The deadly opioid invading the U.S.
Industry expert: EpiPens only cost $20 to make
6 states file civil rights complaints against insurers over HIV drug costs
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.