Biotechs setting price caps on cancer therapies

Sensing a backlash against the soaring cost of oncology therapies, several biotech companies are looking at ways to cap their prices. Bristol-Myers Squibb and Imclone are well along the way to setting caps if their market expands through new FDA approvals, according to an Imclone representative. The program would set an annual limit on what patients would pay for a drug, providing it free or at a deep discount once the ceiling was reached. Genentech is considering a similar strategy for Avastin. Increased pricing pressure is being felt by these companies after Medicare more closely aligned reimbursements to the wholesale cost of the drug plus six percent. Patient groups have raised a hue and cry about the prices being charged, saying these biotech companies are putting these therapies beyond the reach of many patients.

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