Sanofi Genzyme Pricing Principles
May 10, 2017
Sanofi Genzyme recently released pricing principles
to “to help improve access for patients and affordability for the system as a whole.” Sanofi’s principles are:
- To provide a clear rationale for the price when a product is launched
- To limit the total annual increase to a level at or below the rate of medical inflation—also known as healthcare inflation—which is 5.4% in 2017
- To provide greater transparency of pricing practices including average list price and average net price
“The National MS Society is pleased that Sanofi Genzyme is joining in our call for change by striving to enable more affordable access to medications and pledging to bring transparency to the pricing process,” said Bari Talente, Executive Vice President, Advocacy for the National MS Society. “The company’s approach to benchmarking price increases to the U.S. National Health Expenditure is an intriguing solution to a problem negatively impacting people with MS. We welcome Sanofi Genzyme’s positive steps in articulating its pricing principles and its commitment to limiting price increases. We encourage other parties involved within the healthcare system to follow suit.”
Sanofi’s efforts follow other pharmaceutical company pledges on price increases and transparency. Three companies—AbbVie, Allergan and Novo Nordisk—have publicly stated they will limit price increases to single digits. In addition, some companies are beginning to share information about the average discounts they provide insurers and pharmacy benefit managers. Both limiting price increases and improving process transparency are important to ensure that consumers have access to medicines as well as the information they need to make healthcare choices.
Sanofi’s principles align with the National MS Society’s Make Medications Accessible Initiative
and are part of the changes necessary to ensure that medications are affordable, and the process for getting them is simple and transparent.