Mr Bernie Sanders, US Senator, Vermont
The US Congress has written to 14 generic drug manufacturers, including three top Indian firms - Sun Pharmaceutical Industries, Dr Reddy's Laboratories and Cadila Healthcare - following an abnormal rise in prices of 10 generic medicines.
According to a press release posted in United States Senator for Vermont, Bernie Sanders website, 14 separate letters have been sent to 14 pharmaceutical companies including Indian companies Dr Reddy's, Cadila Healthcare and Sun Pharmaceuticals.
"It is unacceptable that Americans pay, by far, the highest prices in the world for prescription drugs. Generic drugs were meant to help make medications affordable for the millions of Americans who rely on prescriptions to manage their health needs. We've got to get to the bottom of these enormous price increases," commented Mr Sanders, chairman, Senate Healthcare Subcommittee, and Mr Cummings, ranking member of the House Oversight Committee.
Other companies include, Actavis, Apotex, Endo International, Global Pharmaceuticals, Heritage Pharmaceuticals, Lannett Company, Marathon Pharmaceuticals, Mylan, PAR Pharmaceutical Companies, Teva Pharmaceutical, West-Ward Pharmaceutical, and Zydus Pharmaceuticals USA.
The Senate's Healthcare Subcommittee pointed an example of the price hike for Albuterol Sulfate used to treat asthma and other lung conditions. The average cost for a bottle of 100 pills was $11 last October. However, the average charge by this April had shot up to $434. An antibiotic, Doxycycline Hyclate, cost $20 last October for a bottle of 500 tablets. By April, the price was $1,849, said the statement.
According to CNBC TV18, stock prices of Sun Pharma and Dr Reddy's Labs fell as much as 5 per cent and 3.7 percent intraday, respectively after the US Congress began investigation into price hikes.
Dr Reddy's have been questioned for Divalproex Sodium & Pravastatin Sodium; and Sun Pharmaceuticals for the same Divalproex Sodium along with Doxycycline Hyclate & Albuterol Sulfate.
In the letters, the companies have been requested to produce the following documents and information:
(1) Total gross revenues from the company's sales of these drugs;
(2) The dates, quantities, purchasers, and prices paid for all sales of these drugs;
(3) Total expenses relating to the sales of these drugs, as well as the specific amounts for manufacturing, marketing and advertising, and purchases of active pharmaceutical ingredients, if applicable;
(4) Sales contracts or purchase agreements for active pharmaceutical ingredients for these drugs, including any agreements relating to exclusivity, if applicable;
(5) A description and valuation of the specific financial and non-financial factors that contributed to your company's decisions to increase the price of these drugs;
(6) Any cost estimates, profit projections, or other analyses relating to the company's current and future sales of these drugs;
(7) Price of this drug in all foreign countries or markets, including price information for the countries paying the highest and lowest price; and
(8) The identity of company official(s) responsible for setting the price of these drugs over the above time period.
