How do companies respond to a good that is highly inelastic? You guessed it- they raise their prices like there is no tomorrow. With reference to Trisha’s blog, Alexion Pharmaceuticals’ drug for rare blood diseases, Soliris charges $700,000 in Canada for a year’s use. This is one of the many patented drugs that have driven prices up because of it’s inelastic nature. Lawsuits have been filed against the government for its attempts on cutting its prices. Similar to Trisha’s comments, this issue makes me question the values of Alexion Pharmaceuticals and the thoughts of their decision makers. If their core values do not include the wellness of patients and simply the profit generated, it is ironic for them to market their supposedly, “patient-focused” values.
I believe that further measures should be taken to decrease prices of overly expensive drugs. Especially for drugs that have a, “life or death” impact, the inability to afford this drug can literally change someone’s life. Alexis Pharmaceuticals promotes the amount of research and development that they have on medicine, however this is deprived from people who cannot afford their products and therefore cannot benefit from their breakthroughs in research and technology. This issue really boils down to the company’s values and what it is that they truly support.
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References:
- “Alexion Pharmaceuticals, Inc (NASDAQ: ALXN) | Global Leader in Treatments for Patients with Devastating and Rare Diseases.” [value]. N.p., n.d. Web. 16 Nov. 2015. <http://alxn.com/>.
- News, CBC. “U.S. Drug Company Sues Canada for Trying to Lower Cost of $700K-a-year Drug.” CBCnews. CBC/Radio Canada, 25 Sept. 2015. Web. 16 Nov. 2015. <http://www.cbc.ca/news/health/u-s-drug-company-sues-canada-for-trying-to-lower-cost-of-700k-a-year-drug-1.3242172>.
- Rana, Trisha. “Trisha Rana’s Blog.” Trisha Ranas Blog. N.p., n.d. Web. 16 Nov. 2015. <https://blogs.ubc.ca/trisharana/>.