This is the subject of my latest Bloomberg column, here is an excerpt:
As for the consumer prices of current obesity drugs, they are not as high as is often reported, when the various methods of obtaining a discount are taken into account. Despite reports that drugs cost $1,000 a month, the truth is much better. Even setting aside insurance, readily available discounts can cut that price in half. Eli Lilly & Co. recently launched online sales of Zepbound dishes for $399 per month.
Hiding in the background are “combined” versions of these drugs, which are pharmacy-produced copies, which are legally allowed when the core drugs are missing. These compounds do not undergo the same testing procedures as the brand names, and their safety and effectiveness have been questioned. But they are easy to find and relatively cheap. This is an example of competition, however it is not perfect and needs to be monitored, to reduce prices – and more paradoxically than government price controls.
Are we currently getting anything close to high value discrimination, or not?
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