Pharmaceutical companies, reeling from recent bad press, are pledging to cap price increases on prescription drugs. Last week, AbbVie Inc became the third global drugmaker to publicly promise to cap annual price increases at under 10 percent, following earlier pledges by Allergan and Novo Nordisk. However, some company executives, including Heather Bresch of Mylan (the company that makes EpiPen, which has increased in price six-fold since the early 00s), say that the pricing model itself has to change. Companies have also attempted to deflect criticism by pointing out that prescription drugs account for only around 15 percent of U.S. healthcare costs and that other aspects of the healthcare system should be targeted for savings.
Read more via Reuters here.