CHICAGO Illinois, N.Y. investigate steep rise in HIV-drug cost

The drug company denies wrongdoing.
CHICAGO (AP) -- Investigators in Illinois and New York are trying to determine if Abbott Laboratories broke the law when it increased the cost of a commonly used AIDS medicine by nearly 400 percent.
Illinois Attorney General Lisa Madigan's office is investigating whether the North Chicago-based drug maker engaged in deceptive or unfair pricing practices when it raised the cost of Norvir, a treatment for the HIV virus, the Chicago Tribune reported in Sunday's editions.
Abbott increased the wholesale price of Norvir in December to $8.57 a day, or $257.10 a month, from $1.75 a day, or $52.50 for a 30-day supply, according to company records.
"Norvir is not like a hay fever medication that people take to lessen symptoms to be more comfortable," Madigan told the newspaper. "It is a drug they take to survive. This investigation is aimed at determining the real reason for the price increase and whether it violates Illinois law."
New York investigation
New York Attorney General Eliot Spitzer is trying to determine if the company violated antitrust law, Abbott confirmed. A spokesman for Spitzer's office would neither confirm nor deny an investigation.
Both investigations center on whether the increase was designed to make AIDS drug cocktails cost-prohibitive and steer patients to Abbott's newer drug, Kaletra, which is more expensive and has a longer patent life.
Abbott said Norvir was priced lower than its rivals for years and denies any wrongdoing.
"Many companies have known the value of Norvir to their drugs and priced their drugs at a premium despite this," said Abbott spokeswoman Melissa Brotz. "Competitors need to price their drugs based on their clinical value. Perhaps those concerned about the cost of therapy should look at the highest cost component of HIV regimens."
Prescriptions for some AIDS drugs cost several thousand dollars a year.