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Why Healthcare is So Expensive Part 5 – Pharma Gone Wild

August 24, 2017 1 comment

 

A few days ago a patient of mine developed a cold sore on her lip and wanted a prescription for Zovirax, a medication she had used many times in the past.   When she got to the pharmacy, I got the dreaded call that the medication needed a prior authorization.   For Zovirax?  So strange, since its a common med and is inexpensive.

Insights-Closing-the-digital-gap-in-pharma-1536x1536-300_StandardWell I did a little research and found out that Zovirax was recently sold by its original manufacturer to Valeant, a drug company that is known for buying small drugs and jacking up the prices dramatically.  It turns out that a small tube of Zovirax now costs $2500.  For an ointment for cold sores.

What the heck is this all about?   How is it possible that it is legal for a company to corner the market on a common and old drug and makes it extremely expensive?  Unfortunately it is entirely legal.

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Categories: Business of Medicine
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