Assuming that most of you readers do not know who Abbott Laboratories Pharmaceutical is, Watch this video before reading any further.
In 1996 Abbott Laboratories introduced Norvir, a medicine used to treat HIV. Around the time of Norvirs launch, it was discovered that when taken in small quantities with a Protease Inhibitor, Norvir would boost the results of that other Protease Inhibitor. This made sales at Norvir skyrocket. Having Norvir, and also the only other Protease Inhibitor around gave them a major edge in the medical world. This would all soon change.
In 2003, Reyataz was introduced into the market by Bristol-Myers Squibbs. Reyataz is designed to be mixed with Norvir, but it had to be purchased separately. Then in the same year, GSK introduced Lexiva, another Protease Inhibitor drug that competed with Kaletra.
On December 3, 2003 the medical world was about to be shaken up. Abbott raised the price of Norvir by 400 percent, but kept the price of Kaletra the same. A deal was set up however, to where if you purchased them both at the same time, the price of Norvir would drop back down to its original price.
The increased price in Norvir violated U.S. Antitrust laws, because Abbott exploited it's monopoly position as the sole producer of Norvir.
Dear blogger,
ReplyDeleteI am glad that you brought this topic up. Like any large corporations, the ones that are supposed to be helping us also want to make as much money as they can.
The price of drugs has been getting steeper and steeper with the decline in the economy but, one thing is for sure, no matter the price of drugs, people will find a way to pay for them. Drug companies know and take advantage of this too.
By raising "Norvie 400%" in cost and keeping "the price of Kaletra the same" they just found a way to make you pay more for both of these drugs. They make the consumer think they are getting a good deal by purchasing both for a lower price then buying them separately, but with this blog, one can see how they are scamming people.
Thank you so much for bringing this issue out and putting the scam out there. I very much enjoyed your blog.
Sincerely,
Collard Dove