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Biotech / Medical : Paracelsian Inc (PRLN)
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To: Elllk who wrote (1784)2/17/1997 6:48:00 AM
From: John H. Farro   of 4342
 
Larry, I wouldn't count on an HMO to pay for AndroVir. I don't think that they have ever paid for a dietary supplement before and I doubt they are going to start now. I'm not even sure it would be a good thing for PRLN if they did. If HMOs were to start paying for AndroVir it might cause the FDA to take a closer look and say "Hey, they are paying for this as if it were a drug. Well, if it walks like a drug and swims like a drug and quacks like a drug-- then it's a drug". If some bureaucrat thought that way then it would be very easy for the FDA to step in and stop the sale through the dietary supplement route.

Of course, if a lot of patients were taking AndroVir before the FDA stepped in, then the FDA might chose not to intervene. Intervention could have a political cost. It might be hard for them to say "You can't have this" to people who have already been helped--- especially if there are patients in Europe who are free to take it.

I'm not sure that HMO's would have to pay for AndroVir for it to be affordable. They plan to sell it for $720/year. That's $2 a day. That's lunch money. Sure, there will be a few people who are very poor who might not be able to afford it. But the vast majority who need it will be able to scrape up $2 a day.

Robin
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