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Wednesday, April 10, 2013

Monopolising lives

Drug overdose surpass auto fatalities as the leading cause of accidental death in the United States. Doctors had a weapon, naloxone, an antidote that reverses opiate overdose. Since 1996 10,000 lives have been potentially saved. A study on the effectiveness of naloxone distribution programs in Massachusetts reported a 27-46% reduction in overdose deaths. In 2008, Hospira secured a monopoly on its production and raised its the price by 1,100%.
Naloxone has enjoyed price competition from manufacturers since it first came on the market in the 1960s, but in the early 2000s manufacturers began closing production lines without explanation. Hospira became the sole producer of injectable naloxone by default – a position it still holds today as no new manufacturers have stepped into the market. Generic, sterile injectables like naloxone can be difficult and costly to produce, and low return on investment is likely a deterrent to new manufacturers.

Chicago Recovery Alliance, director Dan Bigg explained the price rise.“One of Hospira’s marketing executives explained the rationale behind the increase. He told me that Hospira wanted to increase the average customer bill by 3-4%. Instead of raising all their prices and risk losing customers to the competition, they combed through their list of products and chose one item for a price increase so high as to cause the average bill to go up 3-4%.”
That product was naloxone and an obvious choice because almost every doctor’s office and hospital across the country stocks naloxone. It is the only antidote for a growing public health crisis. And, of course, Hospira is the sole manufacturer, leaving customers no choice but to absorb the price increases if they want access to this life-saving medication. Harm Reduction Coalition that produced a report on naloxone distribution programs published by the CDC, in the past two years alone, almost 10% of the distribution programs have closed their doors. And when naloxone centers disappear, the remarkable declines in overdose deaths start to bounce back up.

Nabarun Dasgupta, an epidemiologist at the University of North Carolina, says “I call Hospira an irresponsible monopoly. Naloxone is a $20-million-a-year industry; they can afford compassionate pricing for non-profits [charities].”

Capitalism is not compassionate.

From here

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