The company does offer a savings program that applies to some consumers. Those with high-deductible insurance plans, which includes a growing number of Americans, do not get much relief, however.
This is hardly the first example of sharp price increases. Turing Pharmaceuticals, and its then-chief executive Martin Shkreli, raised the price of the drug Daraprim, which treats a life-threatening parasitic infection, from $13.50 to $750 per tablet.
The drug, 62 years old at the time, was not covered by a patent and was a key antibiotic used in treating persons with HIV/AIDS. The price hike put patients’ health at risk, leading to a cost of hundreds of thousands of dollars for some. Shrekli, unsurprisingly, was vilified (and, for unrelated reasons, ultimately indicted on fraud).
While this conduct was outrageous, it wasn’t illegal. Any pharmaceutical company is free to set the price for its drug at any level the market will bear that maximizes their profits. Other drugs whose prices have risen include treatments for hepatitis C, cancer and high cholesterol. So, while the price hike was not the best public relations move, it is legal.
What explains such a rapid rise in price for a drug that has been around for several years? As a patent lawyer with particular experience in the pharmaceutical industry, I think it’s important to look at the role of patents and also FDA approvals in drug discovery and sales. Currently, a backlog of about 4,000 generic drugs is awaiting FDA approval. Both factors play a role in how both rare and common drugs, such as EpiPens, can shoot up in price so rapidly. [My emphasis. See also The Lack Of EpiPen Competitors Is The FDA's Fault.]
Goldman Sachs Group Inc. sees the pound, the yen and the New Zealand dollar as most vulnerable to a potential surprise from Federal Reserve Chair Janet Yellen’s Aug. 26 speech at the annual monetary-policy symposium in Jackson Hole, Wyoming.
Caesars Entertainment Corp. needs another $990 million to help get its main operating unit out of bankruptcy, but its biggest shareholders, Apollo Global Management LLC and TPG Capital LP, have refused to kick in any more, according to a company financial adviser.
It’s been a long time since you’ve read a hair-raising story about volatility in the stock market. But fear not, financial-scare lovers! The market has now been serene for so long, you actually have cause to worry about the calm.
The emphasis this week is on alternative ways to assess book value. The latest sale of an mREIT reinforces the premise that investors should be wary of simply using book value as the key to estimating the fair value of a mortgage REIT.
00:03:03 TSLA's Planned Roadmap to Vehicles
00:04:54 More on Extrapolation
00:06:19 TSLA Chart
00:08:42 Auto Sales by Quarter
00:10:00 Annual Vehicle Sales
00:13:52 Ford Sales Performance
00:15:53 Possible Problems with the Auto Business
00:16:40 Chinese Auto Sales
00:18:30 Ford Trade Status
00:19:21 Long-Term Ford Portfolio
00:22:27 Ford Trade Ideas
00:29:12 Velocity of Money
00:44:47 Owning a House vs. Renting
00:50:21 Home Sales
00:51:20 XON Chart
00:52:04 XON relation to Zika
00:53:42 APPL Car Environments
00:55:17 Self-driving Cars
00:57:56 Interest Rates
00:59:27 Selling Bonds in the Market
01:02:07 Self-driving car infrastructure ideas
01:08:04 Fair Market Price
01:09:00 DIS Chart
01:10:05 DIS Earnings
01:12:15 XON expires on Oct.
01:14:06 LOW Trade Ideas
01:20:58 DAL Trade Ideas
01:22:00 More Trade Ideas
01:25:00 BBY Trade Ideas
01:27:49 Petroleum Status Report
01:35:00 JNJ Earnings
01:39:00 Long Term Portfolio
01:45:00 Checking the Markets
01:47:46 Short-Term Portfolio
01:48:37 5% Portfolio
01:49:07 Butterfly Portfolio
01:52:40 More Trade Ideas
Phil's Weekly Trading Webinars provide a great opportunity to learn what we do at PSW. You can subscribe to our YouTube channel and view past webinars, here. For LIVE access to PSW's Weekly Webinars – demonstrating trading strategies in real time – join us at PSW — click here!
When will the citizens wake up to the criminality of their government in favoring killer corporate opiates over safe natural painkillers?
Set your mindset to objective and come with me to the little-known but plucky nation of Lower Slobovia. The residents of Lower Slobovia have two choices when they are suffering from chronic pain:
1. A natural, non-addictive medication that they can grow themselves that has never caused a single fatality due to overdose, adverse reactions or mixing with other drugs (polypharmacy), or
2. synthetic opiates manufactured by pharmaceutical corporations that are highly addictive, trigger multiple adverse reactions, manifest dangerous polypharmaceutical attributes and have killed over 165,000 people in the past 15 years-- 28 times the nation's 5,790 combat deaths in recent military conflicts.
The corporations manufacturing and distributing the synthetic opiates as "safe" hid the truth about their medications from doctors, patients and the media: 'You Want a Description of Hell?' Oxycontin's 12-Hour Problem (via John F.) OxyContin’s stunning success masked a fundamental problem: The drug wears off hours early in many people, a Los Angeles Times investigation found. OxyContin is a chemical cousin of heroin, and when it doesn’t last, patients can experience excruciating symptoms of withdrawal, including an intense craving for the drug.
So take a guess which class of drugs is perfectly legal and widely promoted by Lower Slobovia's healthcare system, and which one is classified as a restricted Schedule 1 drug by the nation's Drug Enforcement Agency (DEA), i.e. as dangerous as heroin?
I suspect you saw this coming, right? The natural painkiller that never killed a single soul and can be grown at home is criminalized, while the drugs that have already killed 165,000 people (a number that grossly understates the total number of deaths at least partly attributable to synthetic opiates) and addicted and/or harmed millions of other users is perfectly legal, declared "safe" by the pushers (oops, I mean pharmaceutical manufacturers) and the government, and distributed in the tens of millions of doses by the "healthcare" system.
Lower Slobovia's DEA, the corporate manufacturers of the killer-opiates and its healthcare system that slavishly distributes millions of the killer pills should be immediately escorted to Devil's
We have been following the latest melodrama involving a "greedy" Mylan, and numerous "humanistic" US politicians, all the way up to the Democratic presidential candidate, exchange blows over the company's dramatic price increases of its EpiPen anti-allergy medication, with a healthy dose of amusement for one simple reason: if Congress wants to crack down on someone, it should crack down on itself.
After all, the only reason Mylan has been able to pass the kinds of price increases that Congress is now blasting it for, is because of US laws and regulations; laws which incidentally, have been determined in Washington's backroom bribe parlor, i.e. the corner offices of thousands of local lobby organizations dispensing with billions of dollars in "client" funds.
Clients such as the companies listed below.
Which brings us to this question: dear Congress, have you received millions in lobby dollars from the US pharmaceutical industry.
Or perhaps Congress denies that virtually every single pharmaceutical company operating in the US has spent millions on influence peddling pardon lobbying, in recent years? Perhaps, just like in the case of the Clinton foundation defense, that money was not used to buy favors and influence legislation, but was purely for humanitarian reasons?
So how much money has the US pharma industry spent? According to OpenSecrets, so far in 2016, the amount is $129 million, rising to $2.3 billion over the past decade.
Here is a small selection of the 369 lobbying "clients" OpenSecrets keeps track of: one can see Mylan toward the bottom.
And, as usual, we conclude with our favorite chart showing the relationship between the pharmaceutical industry and Congress, according to which every dollar spent by big Pharma on lobbying generates a return of 77,500%!
And since virtually all representatives and senators suddenly appear so eager to accuse Mylan and its CEO of greed, we look forward to each and every member of Congress explaining to the American public, and their constituency, precisely where all their lobby dollars have came from, what laws were enacted as a result, and most importantly, what they spent the money on.
Following yesterday’s existing home sales report, the Atlanta Fed GDP Now Modelforecast for third quarter GDP fell 0.2 percentage points to 3.4%.
We will not see the BEA’s first estimate for third quarter GDP until October 28. The second estimate for second quarter GDP comes out tomorrow. Based on revisions to June data, I expect a lower estimate to second quarter GDP.
Skipping ahead, this is what the Atlanta Fed model projects for third quarter.
Latest forecast: 3.4 percent — August 25, 2016
The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2016 is 3.4 percent on August 25, down from 3.6 percent on August 16. After yesterday’s existing-home sales release from the National Association of Realtors, the forecast for third-quarter real residential investment growth declined from 1.0 percent to –2.6 percent.
Johnathan Newman explains how the FDA, if it wanted to, could fix the problem of Mylan controlling the EpiPen market pretty quickly and he concludes that capitalism has nothing to do with the price increases. Part one is correct, but part two is a stretch.
This time, it’s the EpiPen, a device that easily and safely injects epinephrine to quickly open up airways for people undergoing severe anaphylaxis because of an extreme allergy. It has saved the lives of countless people who are allergic to bee stings, certain foods, or other drugs because it can be administered on the spot by somebody without any medical training.
EpiPen is sold by Mylan, and the price for a pack of two has increased from about $100 in 2007 to over $600 as of May 2016. Mylan has tried to quell the storm by pointing out that many of their customers pay nothing for the drug because of insurance. Their deflection has been unsuccessful.
The economist looks for competitors in cases like this. A firm cannot just willy-nilly raise their prices without a competing firm leaping in to give consumers what they want at a lower price. As it turns out, Mylan has a great friend who keeps would-be competitors out of the market, or at least makes it so difficult for them that they eventually go out of business. That friend is the FDA.
The Wall Street Journal today dutifully reported the Commerce Department’s seasonally adjusted data on Durable Goods orders in July, proclaiming:
U.S. Durable-Goods Orders Rebounded in July, Jumping 4.4%
However, the actual, not seasonally adjusted data tells another story. It’s easy to actual data to tell if the momentum of the business is gaining or losing ground. Just compare the year to year change for the current month with immediate past months.
The actual data showed a year to year decline of -6.4% and a month to month decline of -13.7%.
That doesn’t tell us much on a standalone basis. We need to compare that to past data to see the momentum of the business. The year to year decline of -6.4% in July was indeed a hair better than June’s drop of -6.7%. However the July drop was larger than each of the 10 months prior to June. That’s a pretty weak basis for claiming that July had an increase of 4.3%. It’s easy enough to see on a chart however.
We also see that the July level was 1.7% below the July 2007 peak, while the June level was just 1.1% below the June 2007 peak.
The June-July month to month drop of -13.7% means little on its own. A month to month decline of some magnitude is normal for July. The July month to month decline was a hair better than in July of 2015, when the drop was -14.1%. Is that a material improvement? Not compared with an 8.4% July gain in 2014. That was an outlier, but the average change in July since the recovery began in 2009 has been -10.5%. The current month was materially worse than average, 30% worse to be precise.
This data is for nominal dollar value. It does not adjust for inflation. Using the PPI for durable goods as the deflator, the big picture on a unit volume basis is a whole lot worse than the nominal data shows. Meanwhile stock prices have decoupled, particularly since 2013.
In terms of unit volume of orders, current levels are well below 2007 levels. Order volume has been in a downtrend for 16 years as the
As I have written many, many times, the “unexpected” events of January and February were a dramatic wake-up call for central banks. Last August’s global liquidation they could at least try to ignore because it could possibly fit within the paradigm of “transitory”, a one-off aberration that was some mysterious Chinese viral contagion and thus of not any great, lingering importance. The...
Note: The charts in this commentary have been updated to include the Q2 2016 Second Estimate.
The chart below is a way to visualize real GDP change since 2007. It uses a stacked column chart to segment the four major components of GDP with a dashed line overlay to show the sum of the four, which is real GDP itself. Here is the latest overview from the Bureau of Labor Statistics:
The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE) and exports that were partly offset by negative contributions from private inventory investment, residential fixed investment, state and local government spending and nonresidential fixed investment. Imports...
“Simulations of the FRB/US model of a severe recession suggest that large-scale asset purchases and forward guidance about the future path of the federal funds rate should be able to provide enough additional accommodation to fully compensate for a more limited [ability] to cut short-term interest rates...
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Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer. One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."
Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.
Genetic components are the DNA sequences that are 'inherited.' Some of these genes are stronger than others in their expression (e.g., eye color). Yet, some genes turn on or off due to external factors (environmental), and it is und...
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Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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