Why your prescription meds have inexplicably gotten more expensive
If there's a sudden increase in the cost of your prescription medication, behind-the-scenes deals could be the culprit.
A new investigation from The Wall Street Journal found that when drug companies see prescription drugs as "undervalued," they buy them out, only to drastically increase the prices. The investigation found increased costs whether or not the products were improved after the buyouts.
The Journal cites Valeant Pharmaceuticals International Inc.'s recent purchase of two heart medications as an example. The same day Valeant bought the drugs, their list prices increased by 525 percent and 212 percent, though nothing about the prescriptions had been changed.
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It's easy to see why companies rack up the prices — they can increase their bottom line without spending money on research into new medicines. According to the Journal, name-brand drug prices have increased by 127 percent since 2008. Company spokespeople told the Journal that higher drug prices create funding for medical research, though doctors expressed frustration at the trend. Read the full report over at The Wall Street Journal.
