News

Calif. Company Agrees to $6 Per Dose Naloxone Rebate

04/06/2016

April 05--Following a letter from the state's attorney general, a California-based drug manufacturer has agreed to a $6 rebate for every dose of naloxone, an opioid overdose reversing drug, purchased by the state or local agencies for a year.

Attorney General George Jepsen sent the chief executive officer Amphastar Pharmaceuticals in September after the company's prices of the drug increased without explanation, his office said Tuesday.

"We know for a fact that naloxone saves lives: it has saved lives in Connecticut, and it has saved lives across the country," Jepsen said in a statement. "While access to naloxone will not solve the opioid epidemic that has gripped every community and every demographic in our state, it is a critical tool for law enforcement, first responders and addiction treatment advocates as we all work to address this crisis."

An agreement with Amphastar announced Tuesday says the company will provide the $6 rebate for any purchase directly from the company or a third-party. Jepsen's office says a dose of the drug costs $33 and $60 based both on the distributor and the volume purchased.

The agreement also stipulated that if Amphastar increases its price for naloxone, the rebate will also increase. The company has come to similar arrangements with other states including New York and Ohio, Jepsen's office said.

The company did not immediately respond to a request for comment. Amphastar maintains that the pricing was based on "legitimate and lawful business factors," according to the language of the agreement.

Jepsen noted in his letter to the company that the company's price increases came just as states like Connecticut were working to get the drug in the hands of more first responders and law enforcement.

In recent years, the legislature has passed measures to further increase access to naloxone. This year, lawmakers are considering a bill that would require cities and towns to have policies in place that would make the drug available to first responders.

Coinciding with the announcement of the rebate, the state also said they received a donation of 500 Evzio auto-injectors, which deliver naloxone into an overdose victim's body, from Kaleo Inc. The injectors will be distributed to the Department of Mental Health and Addiction Services, Department of Corrections and Department of Public Health.

"Addiction is a complex issue that requires a coordinated, multi-faceted approach. Access to Narcan is critical," Gov. Dannel P. Malloy said in a statement. "That's why we've broken down barriers to boost accessibility, that's why we've changed our laws and equipped first responders with it, and that's why we're pleased to make this announcement today."