By PETER LOFTUS
Drug makers are expanding programs to help people afford medicines, amid a prolonged recession and efforts in Washington to overhaul the U.S. health-care system.
Pfizer Inc. said Thursday that it would provide more than 70 of its drugs for free to Americans who have lost their jobs since the beginning of the year and don’t have health insurance. Several other companies including Merck & Co., Abbott Laboratories, Amgen Inc. and Wyeth, have expanded patient-assistance programs in recent weeks.
Pharmaceutical companies say helping people get access to medicines is the right thing to do. But there are other factors at play, too, industry watchers say. The programs could improve the industry’s standing in debates over various health-reform proposals—measures that could put pressure on drug prices. And the programs also can help companies sustain or boost market share by keeping patients on their drugs who will eventually regain insurance.
“Pharma’s obviously always trying to work on their image,” said Jon LeCroy, an analyst with Natixis Bleichroeder. “It gets them to be able to say, ‘We can help out in a recession and help people afford our drugs.’”
Pfizer, however, said its new program wasn’t motivated by political or business calculations. “This has to do with all of us seeing friends, relatives and neighbors going through tough economic times knowing we have medicines that are going to help them,” said spokesman Ray Kerins. He said the idea came recently from employees, who will be able to donate money to the program, which will be matched by a Pfizer foundation.
Ken Johnson, senior vice president at industry trade group PhRMA, said some manufacturers have had patient-assistance programs for decades. But over the past six month, there has been a 10%-to-15% increase in the number of people contacting a PhRMA clearinghouse program for information about assistance.
The new Pfizer program is open to Americans who have become unemployed since Jan. 1, and who lack prescription drug coverage. To be eligible, they must have been prescribed a Pfizer drug that they were taking for at least three months prior to losing their job and enrolling in the program, and must attest to financial hardship.
Those who qualify will receive Pfizer drugs for free for up to 12 months, or until they get insurance again. Included in the more than 70 primary-care medicines available through the program are Lipitor cholesterol-lowering pills and the Viagra anti-impotence pill. Specialty and oncology drugs, such as Sutent, aren’t part of the new program but have existing patient-assistance programs.
Abbott has expanded a co-pay assistance program for insured users of its anti-inflammatory drug Humira. A majority of Humira users now can have their monthly out-of-pocket costs limited to $5. The drug costs about $18,000 a year, on average. Abbott also has provided the drug for free to uninsured and low-income patients since its launch.
In March, Merck doubled the income limit for eligibility in its patient-assistance program to 400% of the federal poverty level. That amounts to about $88,200 or less for a family of four, and lesser amounts for couples and singles, including those who fall below these levels due to unemployment. Those eligible for Merck’s program can receive medicines for free.
Spokeswoman Amy Rose said participation in Merck’s patient-assistance program had declined in recent years due to patent expirations for some top-selling drugs, which resulted in cheaper generic options. Raising the income limit was a way to broaden participation and recognize difficult economic conditions.
Amgen and Wyeth became more generous with assistance for their Enbrel anti-inflammatory drug in mid-April, citing economic conditions. The plan increased coverage of patient co-pays—making them free for six months, and $10 or less per month thereafter for eligible patients.
In a conference call in late April, Amgen Chief Executive Kevin Sharer said Enbrel patients are having difficulty with co-pays, and “health and insurance coverage is not as broad or robust as in prior nonrecessionary years.”
Johnson & Johnson has had a comprehensive patient-assistance program in place for many years, said spokesman Greg Panico.
In some cases the patient-assistance programs offset sales, but analysts say the impact isn’t big. What’s more, even as they expand patient-assistance programs, some drug makers have continued to raise prices when possible. PhRMA’s Johnson noted that overall prescription drug-sales growth has slowed in recent years.
—Thomas Gryta contributed to this article.Write to Peter Loftus at peter.loftus@dowjones.com
