Tuesday, November 18, 2008

Being Cephalon's Pawn

I can't tell you how delightful it is to be a pawn in this game:

It works like this: Knowing that Provigil will face generic competition in 2012 as its patent nears expiration, Cephalon [Provigil's maker] is planning to launch a longer-acting version of the drug called Nuvigil next year. To convert patients from Provigil to Nuvigil, Cephalon has suggested in investor presentations it will price Nuvigil lower than the sharply increased price of Provigil.
Provigil is one of a small number of effective treatments for narcolepsy.

The manipulation of price is only the cherry atop this treat; the fact that Cephalon either has, or will soon be more loudly claiming to have, a longer-acting version of the drug means they've been pushing a less effective treatment all this time.

Neat!

1 comment:

larryniven said...

Welcome to the free market! Ain't it grand?