Medication and prices

[Fred]

Thank you Caroline, like you say it was easy to understand. But, and you know me I like to sometimes look at it from the other side. And I know you don't like mentioning the company by name, but I think it helps our readers.

Why is Tecfidera, the new Biogen/Idec drug more expensive?

#1: I'm not sure how much they paid for Fumapharm, but they have set aside a $2 billion cash pile for acquiring new drugs and companies to bolster its business. So obviously they need to recoup that.

#2: Today's medication is paid for in most countries by insurance or government subsidise, so the prices are driven by what those insurance companies or governments will pay. So if you can sell at a high cost then you will.

#3: We know dimethylfumarate (DMF) is not expensive, you only have to read Bill's pure dimethylfumarate thread But Bill has not gone through stringent costly tests to get approval from a country to market it. Had he have done this before Biogen/Idec then he could be the one dictating the price.

#4: It's not about should they be charging such high amounts of money, it's because they can. Whilst governments and insurance companies are happy to pay then drug companies will be happy to charge them for it.

#5: Most of us have the choice to use the expensive medication or not, my treatment is over €18,000 per year but as it's free I will have it. Should I have to pay for it, I wouldn't and I would probably be talking with Bill instead.

Another thing that keeps drug prices high which is not realted to what they can get away with, the money they have to spend on regulation and development, or the necessity to keep shareholders happy, is the one of possible very expensive court action from another company.

You probably already know about the Danish company Forward Pharma's FP187 – Oral Immunomodulatory Dimethyl Fumarate. The compound is based on the small molecule dimethylfumarate (DMF) in a patented controlled release erosion matrix tablet with enteric coating. FP187 is being developed for possible treatment of immune disorders including multiple sclerosis and psoriasis.

Quote:

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Danish drug developer Forward Pharma came through with one of the year's biggest biotech IPOs, raising $221 million to support its plot to battle Biogen Idec in the blockbuster multiple sclerosis market.

The company moved 10.5 million shares at $21 each--the middle of its proposed range--and set aside another 1.6 million shares to cover any overallotments, setting it up for a maximum deal value of about $253.6 million.

Forward's lead treatment is FP187, a Phase III MS drug that uses a proprietary formulation of dimethyl fumarate (DMF), the same active ingredient in Biogen's Tecfidera. The company plans to begin a late-stage trial testing FP187 against relapsing-remitting MS this year, looking to enroll about 2,000 patients and compare the drug with active beta interferon with a primary efficacy endpoint of annualized relapse rate. After that, Forward expects to launch a Phase III psoriasis study on FP187 in 2015.

But beyond its clinical aspirations, the biotech has plans to contend with Biogen in the courtroom, setting aside another chunk of its IPO cash to fund an intellectual property fight.

Forward was founded in 2005 to develop some assets acquired from Sweden's Aditech Pharma, among them some slow-release formulations of DMF to treat MS. Looking at Tecfidera, Forward believes its patents predate Biogen's. Now, the company is waiting on the U.S. Patent and Trademark Office to set a date for a hearing in which a three-judge panel will weigh in on who discovered DMF first. If Forward wins out, Biogen could be hamstrung in its ability to market Tecfidera, a drug that brought in more than $700 million last quarter and has skyrocketed since winning FDA approval last year.

Biogen, in a statement, said the company doesn't "believe Forward Pharma's patent filings will affect our ability to market Tecfidera," adding that it has "a strong IP portfolio" that "grew out of our pioneering efforts in bringing this important medicine to patients."

Forward's successful debut comes amid a boom-and-bust climate for biotech IPOs. More than 70 drug developers have gone public in 2014, but the frothy valuations of the early year have long since subsided, leaving many market entrants to either accept painful discounts to their planned prices or put off their offerings altogether. In terms of size, Forward's $221 million raise comes second only to Circassia, a U.K. allergy biotech that raised more than $333 million in a March IPO.

Source: NO LINKS ALLOWED

So the gloves are off and it could make very interesting reading for us.

At the end of the day you have 3 options:
1 Vote with your feet and don't use it.
2 Use what is available to you from your insurance, government, or within your price range.
3 Lobby your government or insurance company to fight the drug companies for a better price.

Me I'm happy with with my treatment and at the end of the day, I don't care who makes it or how much it costs as long as it's working. I don't have to pay out of my pocket as I've contributed into the health system and still do, so it's up to the insurance companies and/or governments to dictate the cost not me.

If Stelara was to cost ten times what it does now, I would still take it whilst it's available to me under my health system.

Hello is that my broker, can you get me some more shares in .......................