AstraZeneca (AZN) Follows Boehringer, to Cap Inhaler Cost in US
AstraZeneca AZN announced plans to cap out-of-pocket expenses for its inhaled respiratory portfolio in the United States at $35 per month, following a similar move by rival Boehringer Ingelheim earlier this month.
This cap would apply to all of AstraZeneca’s inhaled respiratory products, which include Airsupra, Bevespi Aerosphere, Breztri Aerosphere and Symbicort.
However, the company plans not to start this until June 2024. The British drugmaker is one of the biggest sellers of inhalers in the United States.
This $35 cap on inhalers is a part of AstraZeneca’s expanded savings programs. Per management, this program has been launched with the intent to make its inhalers more affordable for patients living with asthma and chronic obstructive pulmonary disease (COPD). The program would also cover patients who are uninsured or underinsured.
Shares of AstraZeneca have lost 2.2% year to date against the industry’s 13.2% rise.
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Earlier this month, privately-held Boehringer Ingelheim said it would cap out-of-pocket expenses for all its inhaler products at $35 per month beginning in June. One of the biggest manufacturers of inhalers in the United States, Boehringer’s inhaled respiratory portfolio includes Atrovent, Combivent, Spiriva, Stiolto and Striverdi.
AstraZeneca and Boehringer’s aggressive price cuts come amid pressure to cut costs of asthma inhalers to make them affordable for American citizens.
In January, Senator Bernie Sanders and several members of the HELP committee called out on the four largest inhaler manufacturers in the country, namely AstraZeneca, Boehringer Ingelheim, GSK plc GSK and Teva Pharmaceuticals TEVA, over high prices. The lawmakers had launched a major investigation into the prices at which inhalers for asthma and COPD were sold in the U.S. compared to other countries.
Per the committee, the top four inhaler-makers charge between $200 and $600 each for inhaler products that are typically purchased monthly.
GSK and Teva are yet to make any official announcements about reducing the prices of their inhalers. The committee has accused GSK of charging $319 for Advair HFA in the country when the same inhaler is only available in the U.K. for $26. Teva has only been accused of charging $286 for QVAR Redihaler in the United States when the same is available for just $9 in Germany.
AstraZeneca PLC Price
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Zacks Rank & Key Picks
AstraZeneca currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the overall healthcare sector is ADMA Biologics ADMA, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for ADMA Biologics’ 2024 earnings per share (EPS) have risen from 22 cents to 30 cents. During the same period, EPS estimates for 2025 have improved from 32 cents to 50 cents. Year to date, shares of ADMA have risen 31.4%.
Earnings of ADMA Biologics beat estimates in three of the last four quarters while meeting the same on one occasion. ADMA delivered a four-quarter average earnings surprise of 85.00%.
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