BIRDS OF A FEATHER: PFIZER AND SANOFI ACQUIRE FELLOW PRICE-GOUGERS IN LATEST BIG PHARMA M&A DEALS

Big Pharma Giants With Affinity for Price Hikes Acquire Smaller Brand Name Drug Companies with Their Own History of Egregious Pricing Practices

This week, two Big Pharma giants, both with a long track record of egregious pricing and anti-competitive practices, announced acquisitions of smaller companies with their own history of price-gouging behavior. On Monday, Pfizer announced plans to acquire drug maker Seagen, known for its pipeline of cancer medications, for $43 billion. As STAT News reported, the deal is “the largest acquisition in biopharma since 2019 when AbbVie purchased Allergan for $63 billion.” Seagan was featured in the Institute for Clinical and Economic Review’s (ICER) 2022 Unsubstantiated Price Increase Report for price hikes on the company’s cancer drug Adcetris. The report found Seagen increased the price of Adcetris by more than nine percent over a 12-month period and that the increase was “unsupported by new clinical evidence.”

Also on Monday, French drug maker Sanofi announced plans to acquire Provention Bio, known for its diabetes drug Tzield, for $2.9 billion. Provention Bio recently launched Tzield at a price of $193,900 for a course of treatment after receiving U.S. Food and Drug Administration (FDA) approval for the drug in November. Even Wall Street analysts expressed shock and concern at the pricing of the brand name drug — which far exceeded expectations. Gregory Renza, an analyst at RBC Capital Markets, said “This (price) is much higher than perhaps what the Street was expecting.”

As they say, birds of a feather flock together. Get the facts on Pfizer and Seagen and Sanofi and Provention Bio’s shared histories of egregious pricing practices here:

Pfizer and Seagen

Highlights from Pfizer’s Most Recent Price Hikes

• Pfizer hiked prices on 90 brand name prescription drugs this January alone, including a price increase on popular rheumatoid arthritis drug Xeljanz of six percent and price increases of 10 percent on at least three products.
• In 2022, Pfizer hiked drug prices more than 100 times, increasing the price of best-selling cancer treatment Ibrance and rheumatoid arthritis drug Xeljanz both by more than five percent.
• In 2021, Pfizer hikeddrug prices more than 130 times.
• Last October, Pfizer announced plansto “as much as quadruple” the price of the company’s COVID-19 vaccine – to a price that would represent a “10,000 percent markup over what experts have estimated it costs the vaccine makers to produce the shots.”

Seagen’s Unsubstantiated Price Hike on Adcetris

• Although a relatively new company, Seagen has developed a price hiking history of its own.
• The company was featured in the Institute for Clinical and Economic Review’s (ICER) 2022 Unsubstantiated Price Increase Report, for price hikes on the company’s cancer drug Adcetris.
• The report found Seagen increased the price of Adcetris by more than nine percent over a 12-month period.
• ICER found Seagen’s price increase on Adcetris was “unsupported by new clinical evidence.”
• The price increase resulted in an estimated increase in spending by the Medicare Part B program and patients of $14 million.

Sanofi and Provention Bio

The Latest on Sanofi’s Price Hikes

• Sanofi began the new year by raising prices on more than 20 prescription drugs in January, including blockbuster atopic dermatitis drug Dupixent by six percent.
• Sanofi hiked prices on more than 40 prescription drugs in January 2022 – and engaged in an additional round of price hikes last July.
• Sanofi hiked prices on multiple sclerosis drug Aubagio and rheumatoid arthritis drug Kevzara by seven percent at the start of last year.
• The company hiked prices on at least 40 prescription drugs in 2021.

Provention Bio’s Egregious Price Tag on Tzield

• In November, Provention Bio set a $193,900 price tag for a course of treatment on the brand name prescription drug Tzield, which was approved by the FDA as a treatment for Type 1 diabetes.
• According to Reuters, Tzield will launch at a price of $13,850 per vial, with a total of 14 vials needed for a full course of treatment, for a total cost of $193,900.
• Wall Street analysts expressed shock and concern at the pricing of the brand name drug — which far exceeded expectations.
• Gregory Renza, an analyst at RBC Capital Markets, said “This (price) is much higher than perhaps what the Street was expecting.”
• David Hoang, an analyst at SMBC Nikko Securities, said “Investors will have some level of concern that this pricing could lead to insurance hurdles.” Hoang expected a price in the $70,000-$80,000 range. Pink Sheet reported analysts expected a final price between $100,000 and $115,000.

Pfizer’s acquisition of Seagen and Sanofi’s acquisition of Provention Bio are just the latest examples of Big Pharma companies with shared affinity for price-gouging joining forces. Other recent Big Pharma mergers and acquisitions include:

Amgen & Horizon Therapeutics

Late last year, Big Pharma giant Amgen announced plans to acquire Horizon Therapeutics for $27.8 billion, making it the largest healthcare merger of the year. Horizon Therapeutics is known for several rare autoimmune and severe inflammatory disease drugs, including Tepezza, which treats thyroid eye disease, and Krystexxa, which treats gout.

As the Wall Street Journal reported, Amgen’s motivations in making the deal may be related to the fact that the company is set to lose patent protection on several blockbuster treatments later this decade, including best-selling osteoporosis drugs Prolia and Xgeva.

Indivior and Opiant Pharmaceuticals

Also last year, pharmaceutical company Indivior announced plans to acquire Opiant Pharmaceuticals as part of an effort to consolidate market power over opioid addiction and opioid treatments and undermine access to more affordable alternatives.

AstraZeneca and Alexion Pharmaceuticals

And in 2020, Big Pharma giant AstraZeneca announced plans to acquire rare disease drug maker Alexion Pharmaceuticals in a $39 billion merger. And as the Wall Street Journal reports, many Big Pharma companies are “sitting on big piles of cash,” and looking to, “acquisitions as a key strategy to expand sales.” So, stay tuned for more potential deals on the horizon.

Learn more about how Big Pharma targets mergers and acquisitions to keep prices high, extend monopolies and boost profits HERE.

Learn more about Pfizer’s planned COVID-19 vaccine price increases HERE.

Learn more about Provention Bio’s Egregious $193,000 Price Tag on Diabetes Drug Tzield HERE.

Learn more about bipartisan, market-based solutions to hold Big Pharma accountable HERE.