How a $37,000-a-year medicine sets a good model for drug pricing | STAT

He vowed to price the medicine “responsibly” and avoid the anger that high drug prices have stirred. “You’ll get to judge me and see how we do,” he told me.

To his credit, Schleifer appears to have delivered.

The drug, called Dupixent, has a list price of $37,000 a year. This isn’t cheap. But Regeneron Pharmaceuticals could have charged still more, since other companies charge roughly $50,000 a year for older, less effective psoriasis treatments. (There are steroids and ointments on the market that cost much less, just a couple of thousand dollars a year, but these may not help patients with the most severe form of the debilitating disease.) That makes Schleifer’s decision on pricing unusual.

“The drug is truly unique, so he could have priced it pretty much wherever he wanted,” said Dr. Steve Miller, the chief medical officer at Express Scripts, the nation’s largest pharmacy benefit manager, which works on behalf of insurers.

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How a $37,000-a-year medicine sets a good model for drug pricing.