A bombshell report from the Intercept published yesterday shows Merck overcharging for their new COVID therapeutical treatment. This indicates that Molnupiravir shows promise but overpriced.
Molnupiravir Shows Promise
Last week, Merck released a statement showing a 50 percent drop in hospitalization and death when compared to placebo. This marks the first time an intervention has shown such improvement in clinical disease. Some have gone as far as called this a real game changer in the treatment of COVID, as it compares favorable with Tamiflu for influenza (which has an assumed efficacy of 44% for the same criteria). While the end game for the pandemic has been in sight for sometime, a “COVID pill” combined with vaccination shows the clearest path out. Molnupiravir shows promise but overpriced.
Merck Charges 40 Times Cost for COVID Pill (But Not Everywhere)
Merck is rumored to have set the price for the 40 pill treatment at 700 dollars for one course, but only in countries like America. They have partnered with other providers in countries like India to sell the treatment course for as low as $12 dollars. This sliding scale has Merck and partner Ridgeback slated to make up to 7 BILLION dollars off this treatment by the end of 2021. Great for stockholders, not so great for everyone else. The price alone will ensure than patients with mild disease will likely not reach out for this treatment, and with a disease that shows 1% fatality rate, cost should not be a burden.
But when is cost not an issue in America?
While obscene profits are nothing new to big pharma, it should be noted that most pharma companies are making substantial bets on their treatments. Since 2020, companies like Merck have been taking huge changes “at risk” to help curb the pandemic. Making these products “at risk” means they are slated to lose hundreds of millions of dollars if a drug fails clinical trials. This risk is baked into the prices of all drugs, but there needs to be a middle ground.
Lower Cost; Not Innovation
There are ways to do this, and big pharma needs to start taking responsibility. Last week, the Harvard Business Review released a great article that showcases how the pharmaceutical companies overvalue their role in the creation of these drug formulas. Perhaps now is a good time for Merck to learn this lesson?
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