Allergan CEO swears off big price hikes in manifesto on pharma’s ‘social contract’
Allergan CEO Brent Saunders promised in his CEO blog Tuesday to limit price increases, becoming the first CEO of a major drugmaker to do so. Prices will only go up once a year, and will be limited to single-digit percentage increases. At a time when many drugmakers are under fire for price hikes, that’s a significant promise.
In his blog, Saunders outlines a “social contract” between the pharma industry and the public: Drugmakers invest money, time, and effort to develop treatments that are then priced to be accessible for patients, reduce the societal burden of disease, and sufficiently profitable for drugmakers to continue investing in new meds.
