Sunday, January 8, 2023

Rewarding doctors for prescribing

 Rewarding doctors for prescribing medicine is a long-standing practice among many—if not most--pharmaceutical companies. The rewards consist of payments for consulting services and for participating in a speakers’ bureau. For the most part, however, the doctors don’t consult; neither do they give speeches at conferences.

Recently, former employees of Biogen, which makes drugs for multiple sclerosis, sued the company for just that sort of wrongdoing. Nearly half of the doctors who wrote more than 1000 prescriptions per year for MS medications received consulting payments from Biogen. Biogen settled the case for $900 million.

 Biogen focuses on specialty drugs—those with list prices higher than $50,00 a year. Such drugs, according to the New England Journal of Medicine, “are the most important drivers of profitability in the pharmaceutical industry; relatively few prescriptions for such drugs can generate substantial revenue.”

Pharmaceutical companies want you think that the high cost of the drugs is necessary to pay for the costs of drug discovery. But, according to the NEJM, many pharmaceutical firms spend as much or more on sales and marketing as they do on research. Manufacturers paid doctors nearly $1 billion to be consultants or speakers in 2016. Some of these funds could instead be put toward drug discovery and could help cover any shortfalls that may occur as a result of the new legislation (Inflation Reduction Act) that allows the federal government to negotiate the prices it pays for certain medications.

Negotiations on drug prices refer only to Medicare, of course. What about everybody else?

For an introduction to this blog, see I Just Say No; for a list of blog topics, click the Topics tab.


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