The firestorm over KV
Pharmaceutical Co.'s pregnancy drug Makena is just the tip of the
iceberg when it comes to pricing Orphan Drugs.
Until recently, payers have
routinely reimbursed these drugs, even those costing hundreds of thousands of
dollars, because the limited number of patients would have a small impact on
their budgets. But that was beginning to change even before KV thrust Orphan
pricing back into the spotlight by introducing Makena hydroxyprogesterone
caproate at a price that was 100 times higher than the same drug purchased
through compounding pharmacies (see BioCentury, April 4).