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NextSource Pharma’s decision to increase the price of Gleostine (lomustine) has caught the eye of a trio of senators.

The drug, which is used to treat Hodgkin lymphoma and brain cancer, has seen its price increase by 1,400% ($50 to $786) since NextSource acquired it. Gleostine, which was approved by the Food and Drug Administration in 1976 and has long been off patent, has no generic competition.

“Recent reports of price increases for off-patent drugs have demonstrated the need for continued oversight by the United States Senate,” Sen. Susan Collins (R-Maine), Sen. Claire McCaskill (D-Mo.), and Sen. Catherine Cortez Masto (D-Nev.) wrote in a letter to Tri-Source Pharma CEO Robert DiCrisci. Tri-Source is the parent company of NextSource.

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“We seek your cooperation so that we may better understand drug pricing and related regulatory and public policy concerns. ... In particular, we would like to better understand the factors contributing to the rising cost of lomustine, which has increased nearly 1,400% since 2013 for the highest dose.”

The senators requested information on the gross and net revenues of the drug; expenses related to the sale of the drug; annual profit data; internal and external communications related to current and future sales of the drug, including cost estimates, profit projections, and market share analysis; and a list of other drugs sold by the company along with relevant pricing information.

The manufacturer has previously defended its price increases, citing the increased cost of a key manufacturing component, the cost of providing discounted drugs to Medicaid and uninsured patients, and higher regulatory fees, as well as the maintenance of a year’s worth of “safety stock” to prevent shortages.

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NextSource Pharma’s decision to increase the price of Gleostine (lomustine) has caught the eye of a trio of senators.

The drug, which is used to treat Hodgkin lymphoma and brain cancer, has seen its price increase by 1,400% ($50 to $786) since NextSource acquired it. Gleostine, which was approved by the Food and Drug Administration in 1976 and has long been off patent, has no generic competition.

“Recent reports of price increases for off-patent drugs have demonstrated the need for continued oversight by the United States Senate,” Sen. Susan Collins (R-Maine), Sen. Claire McCaskill (D-Mo.), and Sen. Catherine Cortez Masto (D-Nev.) wrote in a letter to Tri-Source Pharma CEO Robert DiCrisci. Tri-Source is the parent company of NextSource.

©Dynamic Graphics/Thinkstockphotos.com
“We seek your cooperation so that we may better understand drug pricing and related regulatory and public policy concerns. ... In particular, we would like to better understand the factors contributing to the rising cost of lomustine, which has increased nearly 1,400% since 2013 for the highest dose.”

The senators requested information on the gross and net revenues of the drug; expenses related to the sale of the drug; annual profit data; internal and external communications related to current and future sales of the drug, including cost estimates, profit projections, and market share analysis; and a list of other drugs sold by the company along with relevant pricing information.

The manufacturer has previously defended its price increases, citing the increased cost of a key manufacturing component, the cost of providing discounted drugs to Medicaid and uninsured patients, and higher regulatory fees, as well as the maintenance of a year’s worth of “safety stock” to prevent shortages.

 

NextSource Pharma’s decision to increase the price of Gleostine (lomustine) has caught the eye of a trio of senators.

The drug, which is used to treat Hodgkin lymphoma and brain cancer, has seen its price increase by 1,400% ($50 to $786) since NextSource acquired it. Gleostine, which was approved by the Food and Drug Administration in 1976 and has long been off patent, has no generic competition.

“Recent reports of price increases for off-patent drugs have demonstrated the need for continued oversight by the United States Senate,” Sen. Susan Collins (R-Maine), Sen. Claire McCaskill (D-Mo.), and Sen. Catherine Cortez Masto (D-Nev.) wrote in a letter to Tri-Source Pharma CEO Robert DiCrisci. Tri-Source is the parent company of NextSource.

©Dynamic Graphics/Thinkstockphotos.com
“We seek your cooperation so that we may better understand drug pricing and related regulatory and public policy concerns. ... In particular, we would like to better understand the factors contributing to the rising cost of lomustine, which has increased nearly 1,400% since 2013 for the highest dose.”

The senators requested information on the gross and net revenues of the drug; expenses related to the sale of the drug; annual profit data; internal and external communications related to current and future sales of the drug, including cost estimates, profit projections, and market share analysis; and a list of other drugs sold by the company along with relevant pricing information.

The manufacturer has previously defended its price increases, citing the increased cost of a key manufacturing component, the cost of providing discounted drugs to Medicaid and uninsured patients, and higher regulatory fees, as well as the maintenance of a year’s worth of “safety stock” to prevent shortages.

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