The Ethics Behind

Pharmaceutical Companies
Jenn Young
Logan Hayes
Kari Fitzpatrick
Alex Martens
Introduction
- Main Topics:
- Alexion and their treatment Stensiq
- Impacts on general patients using treatment
- Financials of the drug
- Relation to Catholic Social Teachings
- Solution
- Conclusion
Story of family using Strensiq
● New York Times Article Titled The $6
Million Drug Claim
● Being used to treat a rare bone disease that
left mom unable to work
● Her 2 children also affected by the disease
● Husbands union covers the medical bills -
2018 $6 million bill
● Ultra Expensive drugs becoming more
common causing some to not be able to
afford them
Strensiq
● What it is:
○ A prescription medicine used to treat people
with perinatal/infantile- and juvenile-onset
hypophosphatasia (HPP).
■ HPP - causes abnormal development of
the bones and teeth
● What it does:
○ Replaces deficient alkaline phosphatase
(ALP) and improves bone mineralization
 Alexion
● Global biopharmaceutical company
○ Created therapies for rare diseases
● Creators of the most expensive treatments in the
world
○ Strensiq
○ Ultomiris
○ Soliris
○ Kanuma
● Under fire from The National Institute for Health
and Care Excellence (NICE)
○ England’s “health watchdog” rejected treatment
due to cost
Availability of Strensiq

United States Canada

● Available to most patients Universal Health Care; not
● Will insurance pay for it? available unless:
● Can patient afford it? ● Clinical Trial
● Private Insurance Company
Why it cost so much

Alexion pharmaceuticals
Treats a rare disease owns a patent for
Strensiq

Expensive and time

consuming to create new No alternative options
drug
Financial Impacts
● Impacts Patients
● Insurance Companies
○ Can’t predict if future patient
will need this medication
○ Major impact on small insurance
companies
● Employers
○ Employees premiums increase
○ Insurance for company increases
Revenue of Strensiq
● 2016 ~ $205 Million
● 2017 ~ $340 Million
● 2018 ~ $475 Million

● In past 2 years revenue

has more than doubled
● 2019 data so far seems to
be following same
pattern
Revenue of Alexion

● 2016 ~$ 3 Billion
● 2017 ~ $3.5 Billion
● 2018 ~ $4 Billion
What is CST?
“Catholic Social Thought (CST) is the body of doctrine on
matters of human dignity and the common good in society.
The ideas address issues of poverty and wealth, economics,
social organizations and the role of the state.”
The Common Good
● Universal Destination of Goods
○ “...serves to emphasize the fact that all human beings are entitled
to a fair share of the world’s resources; that they are intended for
use by all, and not just those who currently control them or can
afford them.”
● Alexion owns direct patents to their drugs
○ Vast majority cannot afford the drug
Justice
● “Marginalizing some members of society precludes them from participating
fully and properly in society.”
● Burdens of the drug:
○ Lack of participation in society without treatment
○ Debt and bankruptcy leave families at a disadvantage financially
Resolution & Conclusion
● Resolution:
○ Two possible resolutions that could help realign Alexion Pharmaceuticals’
in accordance with the CST principles: Common Good and Justice.
○ Why these resolutions can work if they were to be implemented.
● Conclusion:
○ What are the main takeaways from what was covered?
Resolution
● Two Possible Resolutions:
○ Direct Approach Aimed Towards Alexion Specifically
■ Alexion creates a more affordable generic option for the drug
○ General Approach Aimed Towards American Pharmaceutical Giants
■ Nationwide decrease in the price of all prescription drugs
How Direct Approach Works
● Alexion has patent protection over Strensiq
○ This means that Alexion Pharmaceuticals’ are the sole creators of this drug.
○ Creating a generic option of the drug that is more affordable allows more
patients to access the medication they need.
■ This would fulfill the Common Good principle by allowing humans beings
access to their fair share of resources they need to survive.
■ It would also fulfill Justice because it allows humans affected by this rare
disease to participate fully in society.
How General Approach Works
● The price of prescription drugs are extremely high in the U.S.
○ The U.S. on average charges 56% more than the rest of the world for
prescription drugs.
○ If the prices of all prescription drugs were to be decreased, more people would
have access to the medications they need.
■ This would fulfill both Common Good and Justice in a similar manner
compared to the Direct Approach.
Conclusion
● Strensiq is an extremely expensive prescription medication produced by Alexion
Pharmaceuticals’.
○ This leaves many patients incapable of purchasing Strensiq and Alexion is under fire for their high
prices. Woman and 2 kids directly affected and had $6 million in medical bills for 2018.
● Alexion had revenues of $4 billion in 2018, which draws question to whether they
work for the common good or themselves
○ Strensiq alone reeling in $475 million in 2018
● The issues at hand conflicts with the CST principles: Common Good and Justice.
● Two possible resolutions: Direct and General Approach
○ Direct - Alexion creates generic option
○ General - Prices of prescription medication lowered nationwide
References
https://marketrealist.com/2017/05/strensiq-may-become-key-growth-driver-alexion-pharmaceuticals-2017/

https://www.drugwatch.com/featured/us-drug-prices-higher-vs-world/

https://strensiq.com/what-is-hypophosphatasia

https://www.drugs.com/strensiq.html

https://www.macrotrends.net/stocks/charts/ALXN/alexion-pharmaceuticals/net-income

https://pharmaphorum.com/news/rare-disease-drug-strensiq-too-expensive-says-nice/

https://www.fiercepharma.com/pharma/alexion-extremely-disappointed-nice-determination-costly-strensiq

https://www.nytimes.com/2019/08/25/health/drug-prices-rare-diseases.html

https://news.alexionpharma.com/press-release/financial-news/alexion-reports-fourth-quarter-and-full-year-2018-results