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AstraZeneca holds patients to ransom

AstraZeneca holds patients to ransom

It is not acceptable for AstraZeneca to gamble with the lives of acutely ill patients in order to protect itself from competition.

AstraZeneca has written to medical professionals blaming PHARMAC for AstraZeneca’s decision to withdraw supply of Betaloc injection, an essential presentation of the cardiovascular drug Betaloc.

AstraZeneca’s conduct is a ploy to force more profit from a drug that is about to become generic and therefore less expensive. Pharmaceutical suppliers must realise that when a patent runs out, other suppliers will enter the market and it is not acceptable to hold patients to ransom for commercial gain in such an unethical way.

AstraZeneca fears for its market position in this area and accordingly is pursuing tactics to avoid or delay competition.

The first tactic used by AstraZeneca was to notify PHARMAC of its intention to increase the price of Betaloc tablets, unless PHARMAC protected its market. This would mean that those using the medicine would need to pay a part-charge (in addition to the PHARMAC subsidy and the normal dispensing fee).

Rather than accept AstraZeneca’s threat, and to protect patients from part charges, PHARMAC is now intending to subsidise an additional generic product to Betaloc tablets. The generic product is not yet registered by MedSafe. In the interim, PHARMAC has been consulting on raising the subsidy on Betaloc tablets (to meet the higher price unilaterally imposed by AstraZeneca) with a view to ensuring ongoing full-funding for high-risk patients.

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AstraZeneca is now pursuing a further tactic. In its latest communication with medical professionals, AstraZeneca has announced the termination of supply of Betaloc injection – a market solely supplied by AstraZeneca due to its relatively small size.

AstraZeneca justifies its supply termination on the grounds of market uncertainty across the Betaloc range; a range currently generating over $20 million revenue for AstraZeneca annually.

AstraZeneca is clearly concerned about competition eroding its market share and revenue. From PHARMAC’s perspective, AstraZeneca can keep its market share if it remains competitive.

AstraZeneca’s revenue could reduce in the face of competition, but it is not up to PHARMAC to guarantee drug companies their revenue at the expense of New Zealanders (both as taxpayers and patients, including those who would miss out on other treatments).


PHARMAC anticipated AstraZeneca’s action, and is actively pursing the interest expressed by other pharmaceutical suppliers to supply these products, including the injection, in order to minimise any impacts on patients. PHARMAC is aware of the risk of stock outages of the injection and will keep interested parties updated as appropriate.

ENDS

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