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...patients who need the drug most face a huge barrier: treatment costs nearly $9,000 a year. The drug is a patented product, available in the U.S. under the brand name Clozaril only from New Jersey-based Sandoz Pharmaceuticals, a subsidiary of Sandoz International of Basel, Switzerland. The company's explanation for the steep price is that clozapine occasionally causes fatal side effects, so patients must be required to have regular blood tests to make sure they are tolerating the drug. The expense of the tests pushes clozapine beyond the reach of the majority of schizophrenics, many of whom...

Author: /time Magazine | Title: Medicine: Way Out of Reach | 10/1/1990 | See Source »

That situation has stirred outrage, not only from patients but also from lawmakers, public health-insurance officials and many of the nation's prominent mental-health professionals. Last week in the New England Journal of Medicine, Dr. Carl Salzman, an associate professor of psychiatry at Harvard Medical School, called Sandoz's actions "monopolistic" and demanded that the drug company and health officials come to an agreement that would make the drug more accessible to "the patients for whom it is intended." Earlier this month, Democratic Senator David Pryor of Arkansas introduced legislation that would reduce Sandoz's control...

Author: /time Magazine | Title: Medicine: Way Out of Reach | 10/1/1990 | See Source »

...fully aware of this danger: the drug had been released earlier in Europe and withdrawn temporarily for just this reason. But the regulators decided the drug's potential usefulness was too great to keep it off the market. To address the safety question, the FDA ruled that Sandoz must devise a blood-monitoring system that would spot early signs of the fatal complication...

Author: /time Magazine | Title: Medicine: Way Out of Reach | 10/1/1990 | See Source »

However, critics maintain that the system Sandoz came up with -- in which patients cannot get their weekly dose unless they provide Sandoz, or a company under contract to Sandoz, with a blood sample -- is no more than an elaborate form of gouging. "There are many, many ways to do the same job for a lot less money," said Harvard's Salzman. He and others argue that most hospitals and mental-health clinics could conduct the same testing at a lower cost. They point out that in Europe, where the blood testing is not mandatory, the drug costs only about...

Author: /time Magazine | Title: Medicine: Way Out of Reach | 10/1/1990 | See Source »

...maker of prescription pharmaceuticals and one of the most profitable companies on earth. But lulled by the success of Valium, whose U.S. patent expired four years ago, the company failed to keep pace in the '80s with such aggressive rivals as U.S.-based Merck and Swiss neighbors Sandoz and Ciba-Geigy. Symbolic of Hoffmann-La Roche's backward ways was the firm's thinly held stock, the most expensive traded anywhere. In the past year the price of a single share of Hoffmann-La Roche climbed to more than...

Author: /time Magazine | Title: Just What the Doctor Ordered | 5/8/1989 | See Source »

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