Following the EpiPen price hike controversy, Allergan CEO Brent Saunders promises his company will limit price increases on its prescription drugs.
Ireland-based Allergan, the maker of such products as Botox, plans to raise prices no more than once per year and, when it does, they will be limited to single-digit percentage increases, Mr. Saunders said Tuesday in a blog.
"Our expectation is that the overall cost of our drugs, net of rebates and discounts, will not increase by more than low-to-mid single digits percentages per year, slightly above the current annual rate of inflation," he said.
Mr. Saunders made the promise as part of Allergan's social contract with patients.
Without specifying names, he said some "outlier" drugmakers have made dramatic price increases, which has "shifted attention away from the increasingly vibrant medical innovation ecosystem focused on finding new medicines, improving outcomes for patients and, by doing so, lowering the overall cost of disease."
Allergan’s new social contract includes four principles: invest and innovate, access and pricing, quality and safety and education.
Read the company's full social contract here.
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