Genzyme Case Summary

more inexpensive way of producing the drug was developed. This new method involved growing the enzymes in genetically modified cells. As a result of this, the Orphan Drug Act granted Genzyme seven more years of market exclusivity. To this day, the drug’s price has still not diminished and remains as high as it was. In 2004 the company reported an income of $2.2 billion, with approximately one-third of this revenue coming from it’s orphan drug. At a certain point you have to realize that a company is no longer recouping from R & D costs. It seems clear that Genzyme could very well offer their treatment at a much lower cost, however, they justify their price remaining high because of the fact that insurance companies are paying for it. When Dr. Marlene Haffner, director of the Office of Orphan Products Development at the FDA, was questioned in regards to Genzyme’s Gaucher treatment her response was "I just find it unconscionable that someone can charge that much." [10] …show more content…
Insurance companies and employers were not concerned about paying the prices because it would not have a large affect on their buisness. But today, prices are increasing and more and more orphan drugs are being developed, meaning there are more patients requiring these expensive drugs. This has resulted in health plans refusing to cover certain orphan drugs and some insurers are requiring employers to pay for up to half of the drugs cost. All of which making it more and more difficult for patients to obtain their much needed medication. [10] This has become a conumdrum that was not foreseen during the creation of the Orphan Drug Act, it has helped create life changing drugs that people can’t pay