Data from: “Gaming the System”: a qualitative study on the price of drugs for multiple sclerosis

Objective: To describe pricing decisions, justifications, and attitudes
among current and former biotech industry executives for companies that
manufacture multiple sclerosis disease-modifying therapies. Methods: Four
leaders in biotech who have been directly involved in multiple sclerosis
disease-modifying therapy pricing and/or marketing volunteered to
participate in 30-minute, semi-structured interviews conducted via
telephone. An expert in qualitative methods moderated and analyzed the
interviews alongside the Principal Investigator. Brief, pre-interview
online surveys were also administered, to provide additional context and
insight for discussion. Interviews were audio-recorded and professionally
transcribed. Results: Participants consistently stated that initial price
decisions were dictated by the price of existing competitors in the
market. Revenue maximization and corporate growth were drivers of price
escalations in the absence of continued market penetration. Lower revenue
predictions outside the US also informed pricing strategies. The growing
complexity and clout of drug distribution and supply channels was also
cited as a contributing factor. Although decisions to raise prices were
motivated by the need to attract investment for future innovation,
recouping drug-specific research and development costs as a justification
was not strongly endorsed as having a significant influence on pricing
decisions. Conclusions: Contrary to prevailing narratives that underscore
drug development costs, findings from our interviews suggest that the
existing price ecosystem, overall corporate growth, international pricing
disparities, and supply chain-related distortions may play a more central
role to drug pricing decision.