Xtandi Petitioners Highlight Pfizer Practice of Reference Pricing in US Government Contracts

Following the publication of the US government contract with Pfizer for the COVID-19 therapeutic Paxlovid, the petitioners of the Xtandi government use request wrote to the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH) concerning terms in that contract relevant to the Xtandi request.  In the February 3, 2022 letter, the Xtandi petitioners highlight that the Pfizer Paxlovid contract contains a reference pricing clause, wherein the US government is entitled to the lowest cost for Paxlovid of the G7 countries + Switzerland.

Pfizer, it should be noted, is a part owner (with Astellas) of the US market for Xtandi. Considering that Pfizer has agreed to reference pricing in another contract, it is then difficult to argue that pricing Xtandi reasonably, when the US currently pays 3 to 5 times the price that other high income countries pay, would be an undue burden on the company.

The letter sent by petitioners on Thursday asks that HHS and the NIH use the same or a similar standard to evaluate the Xtandi petition.

The full letter, including an annex table of other reference pricing clauses located in COVID-19 contracts executed by the US government and pharmaceutical companies, is available here: Love-Sachs-Sawyer-UAEM-Letter-Xtandi-Pfizer-Contract-3Feb2022