Amgen Permanently Cuts Repatha Price by 60% Amid Intensifying PCSK9 Inhibitor Pricing War

Compiled by Fan Dongdong

A year ago, Amgen announced a significant price reduction for its PCSK9 cholesterol drug Repatha, from $14,520 to $5,850, causing a stir in the industry. At that time, Amgen stated it would completely eliminate the $14,520 price tag by the end of 2020. However, Amgen fulfilled this commitment ahead of schedule.

Recently,Amgen stated that starting from January 2020, it would exclusively sell Repatha at a price of $5,850.Murdo Gordon, Executive Vice President of Global Commercial Operations at Amgen, stated that the company’s price adjustment is primarily intended to benefit Medicare patients, as some of them still face challenges in affording this treatment on their own.

Foreign media outlet FiercePharma pointed out another reason for the permanent price reduction of Repatha:CompetitionAmgen has been competing with Regeneron/Sanofi’s PCSK9 inhibitor Praluent for market share, a rivalry that escalated significantly earlier this year when Regeneron/Sanofi lowered the price of Praluent to match Repatha’s previous pricing of $5,850.

Currently, Amgen’s PCSK9 inhibitor has surpassed Sanofi and Regeneron in sales. Repatha generated $293 million in sales in the first half of this year, while Praluent’s sales were less than half of Repatha’s, reaching only $135 million. However, the overall sales performance of the PCSK9 inhibitor class has fallen far short of the expectations previously set by Wall Street analysts.

Both companies are now facing increased competitive pressure and challenges. The Medicines Company is conducting Phase 3 clinical trials of inclisiran, a long-acting PCSK9 inhibitor. In September, the company announced that in a trial involving more than 1,600 patients, adding inclisiran to statin therapy reduced patients’ levels of harmful cholesterol by 54%.

Moreover, whether Amgen can boost sales volume to offset the profit losses resulting from Repatha’s lower pricing is a critical issue that warrants attention and resolution in the future. In the second quarter of this year, Amgen reported double-digit growth in prescriptions for the drug, yet sales revenue showed no significant improvement, increasing by only 3%. Amgen also acknowledged that the substantial 60% price reduction is eroding the drug’s profitable revenue.

Since the beginning of this year, major analysts have remained pessimistic about the future growth prospects of Repatha. Despite a 90% increase in sales of the drug in the U.S. market, its first-quarter sales still fell far short of expectations. Amgen is scheduled to release its quarterly earnings report this Tuesday, with Repatha’s third-quarter performance also drawing significant attention from external observers.

Reference Source: Amgen Escalates PCSK9 Pricing War with Permanent 60% Price Cut on Repatha