This week a pharmaceutical giant learned a valuable lesson; better has its value and it is not always at a premium.
The company’s stock price turned drastically lower; reflecting the same direction the buying customers are saying their latest improvement drug’s price should be going. For years the leader in diabetes drug production has used the successful business model that new and better could be sold at a premium with the end users always being willing to pay an inflated price for this novel combination. To leadership’s amazement, this model seems to have failed miserably on their latest endeavor.
In the clinical trials, it was determined that the new drug showed slight yet consistent improvement in the treatment of the majority of patients; however the price of the drug is not being accepted by the patients/insurance carrier or their doctors. Instead, the end users are finding that with a little more monitoring, the patient’s existing drug treatments can achieve the same results and at a substantially reduced cost. Continue reading “The Unacceptable Price of Better”