Printer Friendly

SYNTEX PLEDGES VOLUNTARY RESTRAINT ON PRESCRIPTION DRUG PRICE INCREASES

 PALO ALTO, Calif., April 12 /PRNewswire/ -- Syntex Corp. (NYSE: SYN) announced today that it has adopted a policy limiting its annualized price increases for prescription medicines in the United States to the cumulative, forecasted rate of inflation as measured by the Consumer Price Index (CPI-U). The rate will be calculated and weighted over the entire Syntex product line, with no single product increase greater than CPI-U plus one percent.
 Syntex said that it plans to continue this policy as long as market conditions remain stable and the U.S. government continues to encourage the innovations that result from substantial company investments in research and development.
 "We are concerned about the overall increase in the cost of healthcare in the United States and about the charges that some companies in the pharmaceutical industry have been too aggressive in raising drug prices," Paul E. Freiman, chairman and chief executive officer of Syntex, said. "Pharmaceuticals are the most cost-effective component of our healthcare system. I don't want that fact to get lost in the public debate over the cost of prescription medicines," he said.
 "Although prescription drug costs represent only seven percent of total U.S. healthcare spending, insurance and third-party reimbursement programs result in prescription drug prices being the most visible component of healthcare costs in the country. Of every dollar spent on prescription medicines, the consumer pays about 55 cents out of his or her own pocket, compared with only 20 cents in out-of-pocket costs for each dollar spent on doctors visits and only 5 cents for every dollar of hospital costs.
 "We at Syntex want patients to know that we understand the role prescription medicines play in their personal budgets and that we are trying to hold down drug prices, even though our costs to discover and develop new drugs are going up more than 14 percent this year," Freiman said.
 Syntex noted that the company took no price increases on its prescription medicines in the United States for a 16-month period between April 1991 and August 1992. In August 1992, it increased prices an average of 3.8 percent on an annualized basis, weighted across its entire product line. There were no price increases on some products.
 Syntex is a multinational healthcare company that discovers, develops, manufacturers and markets prescription medicines to treat serious human diseases. Syntex also develops, manufactures and markets animal pharmaceutical products and medical diagnostic systems.
 -0- 4/12/93
 /CONTACT: Kathleen Gary of Syntex, 415-855-5924/
 (SYN)


CO: Syntex Corp. ST: California IN: MTC SU:

GT -- SJ007 -- 4888 04/12/93 16:15 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 12, 1993
Words:428
Previous Article:KINKO'S READIES FOR 1993 RACING AT THE TOYOTA GRAND PRIX OF LONG BEACH
Next Article:AGENCY RENT-A-CAR REPORTS YEAR END EARNINGS
Topics:


Related Articles
SYNTEX'S FISCAL 1992 ANNUAL REPORT NOW AVAILABLE; MANAGEMENT DISCUSSES CERTAIN EFFECTS OF OCTOBER 21 COST-REDUCTION ANNOUNCEMENT
THE DU PONT MERCK PHARMACEUTICAL COMPANY DISPUTES SENATE PRICING ALLEGATIONS
GERALD J. MOSSINGHOFF, PRESIDENT, PHARMACEUTICAL MANUFACTURERS ASSOCIATION, IN RESPONSE TO CHARGES BY SEN. PRYOR ON INDUSTRY PRICING
SYNTEX ACQUIRES EXCLUSIVE RIGHTS TO MARKET ELAN'S ONCE-DAILY NAPROXEN FORMULATION IN UNITED STATES
SYNTEX ACQUIRES EXCLUSIVE RIGHTS TO MARKET ELAN'S ONCE-DAILY NAPROXEN FORMULATION IN UNITED STATES
AGOURON AND SYNTEX TO COLLABORATE IN ARTHRITIS AND CANCER DRUG DISCOVERY
FURTHER DETAILS ON SYNTEX MEETING WITH SECURITIES ANALYSTS
Prescription drug industry must be reformed.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters