Printer Friendly

THE DU PONT MERCK PHARMACEUTICAL COMPANY DISPUTES SENATE PRICING ALLEGATIONS

 WILMINGTON, Del., Feb. 3 /PRNewswire/ -- In 1991, The Du Pont Merck Pharmaceutical Company, in recognition of the concern over rising healthcare costs, established a policy to keep price increases, on average, in line with the general rate of inflation. Today, the company confirms that it has kept its pricing pledge in 1992.
 /EDITORS: NO-CHARGE DIAL-UP LOGO ACCOMPANIES THIS STORY/
 (Instructions below)
 "Contrary to Senator Pryor and Senator Cohen's challenge, we are confident that we have met our commitment on price increases this year. The company remains dedicated to restraint in pricing increases, keeping in line with the general rate of inflation," said Joseph A. Mollica, president and chief executive officer of Du Pont Merck.
 Du Pont Merck, along with many pharmaceutical company representatives and industry leaders, disputes the methodology used by Senator Pryor and declares that the report submitted today is incomplete and offers misleading conclusions. The Senate report provides a general overview of average wholesale list prices of prescription drugs. It does not represent actual prices received by the company on all of a product's sales.
 "During the past year, Du Pont Merck's price increases across the entire product line, on a weighted average basis, were less than 2.9 percent. Some individual products had increases more than inflation, but the average for all products was less than the 2.9 percent rate of inflation (CPI Index)," Kurt Landgraf, executive vice president, Worldwide Pharmaceutical Operations, said.
 The Senate report is based on price data compiled by Medi-Span, Inc. These prices represent list prices before deducting discounts, rebates and other negotiated reductions. Discounts and rebates represent a real reduction in manufacturers' revenues and thus a reduction in price. Because Medi-Span does not take these reductions or discounts into account, the Medi-Span data do not provide a fair basis for measuring manufacturers' price increases.
 Du Pont Merck confirms that the price the company actually received from sales to all customers was significantly lower than the wholesale increases listed in the Senate report. The report targeted three Du Pont Merck products: "Coumadin", "Sinemet" and "Percocet."
 "Sinemet," a treatment for the symptoms of Parkinson's Disease, is listed as one of the pharmaceuticals which increased in price fastest in 1992. Du Pont Merck actually received a 4 percent price increase, not the 15.1 percent listed in the report, from its overall sales of "Sinemet." The overall price increase for "Coumadin" was 6.4 percent, not 10.3 percent as listed in the report. And "Percocet," which was listed in the report with an increase of 10.3 percent, actually experienced a price decline of 6.6 percent overall.
 "It is unfortunate that Senators Pryor and Cohen are attempting to discredit those companies who have committed to pricing containment. We are confident Du Pont Merck has fair pricing policies. We have kept our promises on pricing restraint and we are willing to share our methodology to clarify how price increases are calculated," Landgraf concluded.
 "The Senate report does highlight, however, the major challenge that Congress and all Americans must step-up to face: comprehensive reform of all healthcare delivery. Continuing to take a piecemeal approach as done in the past will continue to produce distortions and impacts in a discriminatory manner," said Mollica. "We need to assure that all Americans have access and coverage for all critical elements of healthcare: hospitals, physicians and prescription drugs. An excellent diagnosis by a physician is meaningless if the patient does not take the remedy. As always, we remain committed to work with Congress to achieve reforms in the healthcare delivery system."


BACKGROUND -- THE DU PONT MERCK PHARMACEUTICAL COMPANY POLICY ON PRICING
 Healthcare Costs:
 In recognition of concern over healthcare costs, Du Pont Merck is committed to keep price increases in line with the general rate of inflation.
 Du Pont Merck seeks to establish reasonable prices, within a highly competitive market, to produce an appropriate return on our large research and development investment and provide affordable medicines for patients.
 Du Pont Merck also has a program to provide poor patients access to medication.
 Single Price:
 The company is committed to providing a single price to U.S. customers for each proprietary tablet and capsule product sold in regular trade packaging. We continue our long-standing policy of giving the government discounted prices, including veterans and military personnel.
 Discounting:
 Multi-source products, radiopharmaceuticals and hospital-only products may be sold on a discounted basis depending on volume and other factors.
 The Du Pont Merck Pharmaceutical Company is a Fortune 500, worldwide research-based pharmaceutical company which markets its products in 80 countries. A partnership between Du Pont (NYSE: DD) and Merck and Co., Inc. (NYSE: MRK), Du Pont Merck is focused on discovering and developing important pharmaceutical and radiopharmaceuticals to treat unmet medical needs primarily in the fight against heart disease, cancer, arthritis, Alzheimer's Disease and AIDS.
 /delval/
 -0- 2/3/93
 /Editors: Du Pont Merck's corporate logo is available without charge on your photo receiver. Have photo editor dial in to 212-967-1293, 212-643-2005 or 212-643-2006 for PRN060192PH1B./
 /CONTACT: Laura A. Mastrangelo of Du Pont Merck Pharmaceuticals, 302-892-8453/
 (DD MRK)


CO: Du Pont Merck Pharmaceutical Company ST: Delaware IN: MTC SU:

MK -- PH022 -- 2388 02/03/93 12:23 EST
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:Feb 3, 1993
Words:866
Previous Article:CRUISE VACATION MONTH PROCLAIMED IN FLORIDA
Next Article:WASHINGTON MUTUAL ANNOUNCES FOURTH-QUARTER COMMUNITY CONTRIBUTIONS
Topics:


Related Articles
DU PONT MERCK, BANYU PLAN JOINT VENTURE FOR JAPAN
MERCK TO LICENSE TRADEMARK AND MARKETING RIGHTS FOR TWO BRANDS TO THE DU PONT MERCK PHARMACEUTICAL COMPANY AND ITS EUROPEAN SUBSIDIARIES
DU PONT MERCK NAMES BLANK VP FOR WORLDWIDE MARKETING
DU PONT MERCK HONORS OUTSTANDING SALES ACHIEVEMENTS: DIRECTOR'S CLUB AWARDS
ROBERTS PHARMACEUTICAL CORPORATION ACQUIRES ETHMOZINE, A CURRENTLY MARKETED CARDIOVASCULAR DRUG FROM DU PONT MERCK
ROBERTS PHARMACEUTICAL COMPLETES ACQUISITION OF ETHMOZINE FROM DU PONT MERCK
BOC HEALTH CARE ACQUIRES BREVIBLOC FROM DU PONT MERCK
THE DU PONT MERCK PHARMACEUTICAL COMPANY AND BRITISH TECHNOLOGY GROUP USA SIGN AGREEMENT TO TRANSFER PHARMACEUTICAL TECHNOLOGIES
DU PONT MERCK ANNOUNCES PERSONNEL APPOINTMENT
DU PONT MERCK WILL CO-PROMOTE NEW WELLCOME EPILEPSY DRUG

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