This Drug Pricing Scheme Could Be Making Your Medicine More Expensive

This Drug Pricing Scheme Could Be Making Your Medicine More Expensive

Biosimilars that are as safe and effective as expensive brand-name biologics could significantly reduce drug prices and healthcare spending, but only if they win support from insurers. Unfortunately, drugmakers like Johnson & Johnson (NYSE: JNJ) may be employing tactics to keep that from happening.

In this episode of the Motley Fool's Industry Focus: Healthcare podcast, analyst Michael Douglass is joined by contributor Todd Campbell to dig into the details of a lawsuit recently filed against Johnson & Johnson by Pfizer (NYSE: PFE). In its claim, Pfizer accuses J&J of negotiating contracts with insurers that prevent coverage of Pfizer's biosimilar to Remicade, a top-selling autoimmune disease drug. Listen in to find out how this scheme could be increasing drug prices.

Also, the two weigh in on Axovant Sciences' (NASDAQ: AXON) disappointing setback in Alzheimer's disease and how its recent high-profile trial failure impacts patients and shareholders.

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Source: Fool.com