Friday, March 18, 2011

KV Pharmaceutical

I know its been a long time since I updated my blog.... I saw this online this morning, and it pissed my off, so I thought I would re-post it. I don't remember where it came from, so I can give the source...

KV Pharmaceutical won the exclusive rights to produce a shot that help prevent premature births, and decided to celebrate by engaging in some serious price gouging. Thanks to KV, a shot that once cost about $10 will now cost $1,500. Why? Apparently, just because.

According to ABC News, KV's new arbitrary and blatantly greedy pricing strategy puts the cost of treatment over the course of a pregnancy at $30,000.

Astute pharma investors will no doubt point out that KV must have spent a lot of money for research and development of the product, so are justified to set the price. Except, as ABC pointed out, the shot has been around since 1958 and, in fact, we all made the outlay for development.

"All the upfront development of the drug was done by the National Institute of Health," Dr. Kevin Ault, associate professor of gynecology and obstetrics at Emory University School of Medicine, told ABC. "You and I paid for that with our tax dollars, it's not like this pharmaceutical company is trying to recoup its investments in research and development, as is usually the reason for the price of new drugs."

Ultimately, the Food and Drug Administration gets all the thanks for granting KV not only the exclusive rights but the cojones to price gouge expectant mothers reveling in the experience of an at-risk pregnancy. The FDA approval prevents the pharmacies that had been producing the shot from doing so anymore and also prevents doctors from using anything but the KV formulation.

It's always nice to see the government making decisions that are in the best interests of its citizens. And, of course, who would suggest that KV should face any regulation?

No comments: