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US Capitol Capsule: In current US budget-cutting climate, was KV naïve in pricing Makena?

This article was originally published in Scrip

Executive Summary

KV Pharmaceuticals and its subsidiary Ther-Rx on 1 April gave in to public pressure and sharply cut the price of their newly approved preterm birth prevention drug Makena (hydroxyprogesterone caproate) from $1,500 to $690 per dose. But at a time when the US government is being funded a few weeks at a time – with another potential shutdown looming for 8 April – and Republicans are seeking to slash $4 trillion from the budget, it is surprising the companies appeared to be so naïve that they could get the US taxpayer to pick up much of the expected $4.2 billion annual cost of the drug without stirring controversy.



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