As Alnylam Pharmaceuticals nears approval of its first drug, the fledgling drug-maker is usually planning to transition out of research in addition to development into the commercial stage.
which means figuring out a pricing strategy, in addition to CEO John Maraganore said he supports the idea of pegging increases in drug prices to the rate of inflation.
“which’s hard to justify drug cost increases,” Maraganore said on CNBC’s “Power Lunch.” If you cost a drug appropriately, where which ought to be priced, whats the rationale of increasing the cost every year?”
“which’s hard for our industry to defend which, overall,” he added.
which breaks down to a cost increase of approximately 2 to 3 percent yearly, which pales in comparison to increases industry-wide. Drug costs have skyrocketed in recent years, with some prices surging more than 1,000 percent per year.
Companies argue profits via inflated drug pricing help them grow in addition to fund more drug development. Alnylam hopes to take almost the opposite approach, growing through innovation.
“At Alnylum, we’ve got a truly robust product engine. We possess the ability of generating, with our platform, a steady flow of brand new medicines. We just don’t have to rely on drug cost increases as a way of fueling future growth for the company,” he said.
Despite his optimism, the company had high-profile drug failures. Stock struggled late last year when the company was forced to halt development on drug revusiran, after a late-stage study revealed which increased risk of death in test subjects.
Still, Maraganore feels confident which Alnylam’s next drug, patisiran, is usually nearing approval, in addition to the company features a few additional drugs inside the pipeline. Stock has responded accordingly, up more than 257 percent year-to-date.
Maraganore also looked ahead to what drug distribution could look like inside the near future. Alnylam aims to be there when Amazon makes more decisive moves into the health-care industry, according to the CEO.
“which could be very disruptive via distribution type to have a company like Amazon inside the space,” Maraganore said. “We welcome a conversation with Amazon to … understand how we can work together to make sure patients get access to important medicines.”