Healthy Returns: Drugmakers are capping inhaler prices at $35 in a win for some patients

2024-03-26 19:46:00+00:00 - Scroll down for original article

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In this article AZN-GB Follow your favorite stocks CREATE FREE ACCOUNT A woman using an inhaler. BSIP | Universal Images Group | Getty Images Think a friend or colleague should be getting this newsletter? Share this link with them to sign up. Good afternoon! Inhalers will soon get a whole lot cheaper for some Americans. Three of the world's largest inhaler makers have agreed to cap the out-of-pocket price of their inhaler products and similar inhaled medicines at $35 a month for certain U.S. patients. British drugmaker GlaxoSmithKline announced its cost cap last week following similar moves by AstraZeneca and the privately held Boehringer Ingelheim. But there's one holdout: Teva Pharmaceuticals, another major inhaler manufacturer, has not made a similar commitment. The cost caps from the three other companies won't go into effect immediately. They also didn't come from out of nowhere. In January, Sen. Bernie Sanders (I-Vt.) and other members of the Senate Committee on Health, Education, Labor, and Pensions launched an investigation into why all four companies charge more for inhalers in the U.S. than in other countries. It adds to the years of political scrutiny and public outrage that the broader pharmaceutical industry has faced over high health-care costs in the U.S. Last year, Eli Lilly, Novo Nordisk and Sanofi moved to slash the cost of certain insulin products for some U.S. patients following pressure from the same Senate panel. So, who typically uses inhalers, and how much do they cost in the first place? People with chronic lung conditions that affect their breathing, such as asthma or chronic obstructive pulmonary disorder, or COPD, most commonly use inhalers. They can use daily inhalers to prevent or manage their symptoms and fast-acting inhalers at times when their breathing worsens, like during an asthma attack. An estimated 25 million Americans have asthma, while around 16 million suffer from COPD. Many of those patients rely on inhalers to help them breathe, and some end up having to ration those products due to price, the Senate HELP committee said in a release in January. Here's what the panel says drugmakers have been charging for some of their inhaler products: Advair HFA from GSK: $319 in the U.S.; $26 in the U.K. Combivent Respimat from Boehringer Ingelheim: $489 in the U.S.; $7 in France Breztri Aerosphere from AstraZeneca: $645 in the U.S; $49 in the U.K. QVAR RediHaler from Teva Pharmaceuticals: $286 in the U.S.; $9 in Germany In addition to the price differences, the panel argued that the companies extended monopolies on their products inappropriately. The committee argued the drugmakers used tactics like obtaining additional patents close to the end of their period of market exclusivity, shifting patients to newer versions of inhalers with longer patent protection and entering into agreements with generic manufacturers to stave off cheaper competition. Generic inhalers can cost as little as $30. School nurse Keri Personnete holds a child's inhaler in the nurse's office at the Barrington Early Learning Center in Barrington, Illinois, on Feb. 15, 2017. Stacey Wescott | Chicago Tribune | Tribune News Service | Getty Images Notably, GSK said it recently reduced the list price of Advair HFA by an average of 20% and a similar product, Advair Diskus, by an average of 50%. GSK's new price cap applies to both of those products and the rest of its asthma and COPD inhaler portfolio. That includes the company's popular Trelegy Ellipta and other Ellipta inhaler products, among others. The caps come after GSK discontinued the branded asthma inhalers Flovent HFA and Flovent Diskus at the beginning of January. The company replaced them with "authorized generic" versions of the inhaler, which are identical aside from branding. The company's price ceiling will specifically benefit patients taking those medicines whose monthly costs currently exceed $35. It will go into effect on Jan. 1, 2025, GSK added in a release. Meanwhile, AstraZeneca's price cap will apply to the company's entire range of inhaler products used to treat asthma and COPD. That includes Symbicort, Breztri Aerosphere, Bevespi Aerosphere and Airsupra. The cap will apply to patients who are uninsured or underinsured and will go into effect on June 1. That's the same day Boehringer Ingeleim's out-of-pocket cost cap on all of its inhaler products will take effect. Boehringer Ingelheim's cap will apply for "the most vulnerable patients," including those who are uninsured or underinsured. The cap applies to its Atrovent HFA, Combivent Respimat and Spiriva products, among others. Sanders applauded the three companies for announcing their cost caps. "This will significantly cut costs for millions of Americans with asthma and COPD so that they will be able to afford the inhalers they need," he said in a release last week. We'll be watching to see whether Teva announces its own cap. Feel free to send any tips, suggestions, story ideas and data to Annika at annikakim.constantino@nbcuni.com. Latest in health-care technology