Thursday, August 12, 2010

Rest Stop

If you recall an earlier blog on the true costs of the active ingredient in your favorite prescription medicines, the all-out uncontested winner was the sleep medicine Lunesta, with a price of $2,656.67 per gram.

It seems that many insurance companies are unhappy with the price of Lunesta as well, and they are charging a higher co-pay for this medicine, in an attempt to get their subscribers to switch to a lower cost ‘generic’ medicine like zolpidem.
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What’s a pharmaceutical company to do?

Well, for one thing, they are now offering a free 7 day trial for this profit-star. And since (according to Drugs.com) “Lunesta may be habit-forming”, this will surely get their foot in the door with many patients who have trouble sleeping. Looks like Sepracor, the company that makes Lunesta, is taking a play out of the drug pushers handbook – i.e. give ‘em a taste for free and get them hooked’. Hey, sometimes you can’t beat the classic approach!

The other thing that Sepracor is doing is offering what amounts to a free coupon, where you can get up to $50 off each monthly prescription for the next 12 months – a savings of up to $600.00. The $50 monthly savings will surely offset all but the most extreme co-pays, and by the end of 12 months, your habit will be well established.

Well, both of these approaches might seem a little shady and unethical to you and me, but we’re dealing with corporate profits here. In 2007 alone, Lunesta netted Sepracor close to 598 million dollars in revenue – AFTER paying for all those rebates, sales staff, print ads and TV commercials. I am sure that Sepracor executives sleep very well indeed – even without the use of their overpriced little pill.




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