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    Home > Active Ingredient News > Drugs Articles > Drug pricing: the US government investigates Lilly and MSD

    Drug pricing: the US government investigates Lilly and MSD

    • Last Update: 2015-11-17
    • Source: Internet
    • Author: User
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    Source: on November 17, 2015, both Merck & Co and Eli Lilly disclosed that the company was under investigation by the U.S Department of justice As a result, another round of debate on drug pricing has started in the United States Other companies, including Valeant, are also in full view of drug prices and sales practices As a result, the Department of justice has begun to act, which appears to focus on how pharmaceutical companies report product prices to the government's Medicaid program Lilly disclosed in the filing document of the securities and Exchange Commission that relevant departments require the company to provide relevant information about "certain distribution service agreements with wholesalers", especially requiring the company to calculate the average production price (AMPS) for the Medicaid discount plan, and then report Pharmaceutical companies pay discounts to Medicaid, according to amps paid by wholesalers, so the government can recover money from participating pharmaceutical companies and return it to Medicaid In previous cases, it was proposed that pharmaceutical companies used improper means to lower the reported amps due to the need to pay service fees to wholesalers, and did not fully report the amps of some drugs In July, AstraZeneca and cephalon were accused by the US government of underpaying discounts AstraZeneca paid $47 million and cerfaron $7.5 million to close the case At the time, the Ministry of Justice said it would continue to regulate the pharmaceutical industry when Medicaid overpays for drugs At the same time, according to MSD, the company received an order to accept "civil investigation" For dulera, which treats asthma, the company is required to provide contract and pricing information with some drug welfare management agencies and Part D plans of medical insurance Dulera's sales in the first nine months of this year were $383 million, an increase of 17%, supported by strong demand from the United States, with a good growth momentum, according to the company's filing Both Merck and Lilly said they would cooperate with an investigation launched by the U.S federal prosecutor's office in the Eastern District of Pennsylvania In the United States, the supervision of drug pricing has become more and more strict, and the government has intervened in the investigation under the circumstances of trying to deal with the pricing problem through the introduction of new laws by the legislature Among the drug pricing waves, including the dramatic increase in the price of a drug by Turing Pharma, which is used to treat opportunistic infections in AIDS and cancer patients Not long ago, the Senate Special Committee on aging launched a new investigation into some drugs with expired patent protection, calling Turing pharmaceutical and Welland, as well as two other pharmaceutical companies, retrophin and rodelis.
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