Why Pharmaceuticals Are So Complicated In The U.S. | CNBC Marathon
CNBC・2 minutes read
The United States faces exorbitant drug prices due to complex insurance and pharmacy relationships, impacting millions of Americans struggling to afford medications. Biontech collaborates with Pfizer to develop an effective COVID-19 vaccine with 95% efficacy, leading to a significant financial success and FDA approval.
Insights
- The United States has the highest drug prices globally due to complex insurance and pharmacy relationships, impacting nearly one in four Americans who struggle to afford medications.
- Biontech's successful pivot to mRNA technology for COVID-19 vaccines, partnering with Pfizer, resulted in a highly effective vaccine with 95% efficacy, distributed globally, and marked by significant financial success.
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Recent questions
Why are drug prices in the United States so high?
Drug prices in the United States are exorbitant due to complex insurance and pharmacy relationships. The system allows for high prices, with pharmacies like CVS, Walgreens, and Rite Aid being major sources of prescription drugs for millions. Additionally, discount card vendors negotiate with pharmacies to offer discounts to customers, collecting fees from the pharmacies when the card is used. This intricate network of relationships and negotiations contributes to the high cost of medications in the U.S.
How did Biontech pivot to develop a COVID-19 vaccine?
Biontech, primarily focused on cancer treatments, redirected resources to develop a COVID-19 vaccine in early 2020. The company pivoted to mRNA technology for a rapid vaccine response and partnered with Pfizer to develop mRNA-based vaccines. By starting clinical trials and scaling production quickly, Biontech was able to enroll over 43,000 participants in Phase three trials to measure vaccine efficacy against COVID-19. This strategic shift in focus and collaboration with Pfizer led to the successful development and distribution of the Pfizer Biontech vaccine.
What led Johnson & Johnson to split into two companies?
Johnson & Johnson is splitting into two publicly traded companies to separate its consumer business from pharmaceutical and medical devices. Legal battles and liability issues, such as a $5 billion settlement over nine years for its involvement in the opioid crisis, have prompted this decision. By cutting products and facing lawsuits related to talc-based baby powder, Johnson & Johnson aims to streamline its operations and focus on core business areas while addressing legal challenges and financial implications.
How did Biogen's drug Aducanumab for Alzheimer's disease fare?
Biogen's drug Aducanumab for Alzheimer's disease faced mixed reception due to questions on efficacy, prescription, monitoring, access, and insurance coverage. Despite proceeding with an FDA application for Agile, concerns arose about the drug's effectiveness, with a small observed effect size and associated risks like brain swelling and bleeding. The FDA used accelerated approval for Agile, focusing on removing amyloid from the brain rather than slowing dementia, leading to resignations from the FDA committee post-approval and ongoing debates on reimbursement by insurers like Medicare.
What impact did the Pfizer Biontech vaccine have on the COVID-19 pandemic?
The Pfizer Biontech vaccine played a significant role in combating the COVID-19 pandemic by showing 95% efficacy in activating the immune system against the virus. With over 1.75 billion doses distributed globally, the vaccine gained full FDA approval in August, marking a step towards normalcy. Pfizer also submitted data showing that a booster shot six months after the second dose restores immunity to 95%, with plans for emergency authorization for children ages 5 to 11. Biontech's success in developing the vaccine and advancing oncology work alongside COVID efforts has been instrumental in the fight against the pandemic.
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