Pharmaceutical Tragedy: boo-hoo for a greedy corporation

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

Genentech's stock fell on the news that its already modestly priced drug, Avastin,
could work effectively at lower doses, potentially dropping the monthly price of
treatment from $8,800 to a mere $4,400.
Anon. "With a Costly Cancer Drug, the Dose Appears Optional." New York Times (23
February): p. C 7.
"Genentech said Thursday that a low dose of its cancer drug Avastin worked just as
well as a more expensive high dose in a clinical trial of patients with lung cancer.
Genentech.s shares fell 2.5 percent amid concern that the company, as well as its
majority owner, Roche Holdings of Switzerland, would receive less revenue from the
drug if doctors chose the low-dose version."
.This means that future prescribing is likely to be done with the low dose of
Avastin instead of the high dose,. said Karl-Heinz Koch, an analyst with Bank
Vontobel. .The impact is that the monthly price for Avastin in non-small-cell lung
cancer drops to $4,400 from $8,800..


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Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com