Vice-President Vestager forces SA drug firm Aspen to slash cancer drug prices
- 3 years ago
Statement by Executive Vice-President Vestager on the Commission decision to accept commitments by Aspen to reduce prices for six off-patent cancer medicines by 73% addressing excessive pricing concerns. https://www.eudebates.tv/debates/eu-policies/employment-and-social-affairs/we-are-living-longer-and-we-need-a-european-plan-for-ageing-population/
Commission has decided to accept commitments offered by Aspen to reduce the prices of six critical cancer medicines. Aspen committed to reduce prices by 73 percent on average across Europe and also committed to continue supplying these medicines in all countries where they are currently sold. The commitments remove entirely the Commission's concerns of excessive pricing in breach of EU competition rules. This will make Aspen's cancer medicines immediately more affordable, saving European health systems millions of Euros and make the medicines available for people who need it.
#eudebates #debate #EuropeanUnion #BeatingCancerPlan #Kyriakides #EUcancerplan #Cancer
The medicines concerned and Aspen's price increases
Aspen's medicines treat serious and rare forms of blood cancers such as some types of leukaemia and myeloma. They date back to the fifties and have been off-patent for decades. Even if they are old they are still used by thousands of patients across Europe. Aspen's cancer drugs are life-prolonging and some are life-saving. Vulnerable patients, such as children and elderly patients are particularly dependent on them for their treatments.
Aspen acquired these cancer medicines in 2009. From 2012 onwards, it progressively started to increase their prices very sharply across Europe. Aspen was able to achieve price increases of several hundred percent because patients and national health authorities often had no real alternative to Aspen's medicines.
When some national authorities tried to resist Aspen's requests for steep price increases, Aspen went as far as threatening to withdraw the medicines from the national lists of reimbursable drugs. In some cases, it gave clear instructions to its negotiation teams that price increases should be accepted or there would be no supplies at all.
The Commission's investigation and competition concerns
The Commission's investigation revealed serious concerns that Aspen has been abusing its dominant market position by charging excessive prices for the cancer medicines since 2012.
The Commission analysed in detail Aspen's costs and prices based on its corporate accounts. Our analysis revealed that following the price increases, Aspen's average profit across Europe was three times higher than the average profitability of other comparable companies.
Aspen's prices exceeded the costs of producing and selling the medicines by almost three hundred percent on average, even after accounting for a reasonable rate of return.
Commission has decided to accept commitments offered by Aspen to reduce the prices of six critical cancer medicines. Aspen committed to reduce prices by 73 percent on average across Europe and also committed to continue supplying these medicines in all countries where they are currently sold. The commitments remove entirely the Commission's concerns of excessive pricing in breach of EU competition rules. This will make Aspen's cancer medicines immediately more affordable, saving European health systems millions of Euros and make the medicines available for people who need it.
#eudebates #debate #EuropeanUnion #BeatingCancerPlan #Kyriakides #EUcancerplan #Cancer
The medicines concerned and Aspen's price increases
Aspen's medicines treat serious and rare forms of blood cancers such as some types of leukaemia and myeloma. They date back to the fifties and have been off-patent for decades. Even if they are old they are still used by thousands of patients across Europe. Aspen's cancer drugs are life-prolonging and some are life-saving. Vulnerable patients, such as children and elderly patients are particularly dependent on them for their treatments.
Aspen acquired these cancer medicines in 2009. From 2012 onwards, it progressively started to increase their prices very sharply across Europe. Aspen was able to achieve price increases of several hundred percent because patients and national health authorities often had no real alternative to Aspen's medicines.
When some national authorities tried to resist Aspen's requests for steep price increases, Aspen went as far as threatening to withdraw the medicines from the national lists of reimbursable drugs. In some cases, it gave clear instructions to its negotiation teams that price increases should be accepted or there would be no supplies at all.
The Commission's investigation and competition concerns
The Commission's investigation revealed serious concerns that Aspen has been abusing its dominant market position by charging excessive prices for the cancer medicines since 2012.
The Commission analysed in detail Aspen's costs and prices based on its corporate accounts. Our analysis revealed that following the price increases, Aspen's average profit across Europe was three times higher than the average profitability of other comparable companies.
Aspen's prices exceeded the costs of producing and selling the medicines by almost three hundred percent on average, even after accounting for a reasonable rate of return.