Watchdog group seeks probe into two vaccine manufacturers

A citizens’ watchdog group is asking for an antitrust investigation into two large drug companies that offer discounts to physicians who agree to solely purchase their products.

The Citizens for Responsibility and Ethics in Washington (CREW) sent a letter to the Federal Trade Commission asking for an antitrust investigation after learning that Sanofi-Pasteur and Merck require physician health care groups purchasing their vaccines to enter into contracts prohibiting them from purchasing vaccines made by other companies.

“Patients presume that physicians choose vaccines based on the patient’s best interests. Now we learn that’s not always true,” Melanie Sloan, CREW executive director, said in a press release. “In some cases, physicians are choosing vaccines based on the discounts offered by the drug manufacturer.”

To entice physician health care groups to purchase their vaccines, Sanofi-Pasteur and Merck offer price discounts if the health care groups agree to buy all of their vaccines solely from one manufacturer. The discounts are conditioned on an express agreement that the health care groups will use only the offering drug company’s vaccines as well as other products. If any member of the practice fails to comply with this exclusivity requirement, the entire practice loses the discounts, according to the group.

As a result of these restrictive contracts, physicians may not offer patients alternative vaccines, even when “they may be more effective and their use would be in the patients’ best interests,” the group wrote. As an example, the group said Sanofi-Pasteur, which markets the meningitis vaccine Menactra, “bars physicians from offering Novartis’ vaccine, Menveo, even though some studies indicate Menveo may offer greater protection to teenagers.”

CREW said these contracts suppress competition, prevent new and potentially more effective vaccines from entering the market, and stifle innovation in an industry that receives generous federal funding.

Len Lavenda, a spokesman for Sanofi, said these contracts “offer real value to those who choose to buy our vaccines, but customers are certainly able to purchase competitive vaccines, should they so choose.”

Reimbursement for administering vaccines has been an ongoing issue for physicians. Often, physicians are paid just a percentage or two above the actual cost after factoring in pricing and storage costs. – by Colleen Zacharyczuk

Follow InfectiousDiseaseNews.com on Twitter.