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Biotech / Medical : Monsanto Co. -- Ignore unavailable to you. Want to Upgrade?

To: Anthony Wong who wrote (936)	1/20/1999 12:18:00 PM
From: Dan Spillane	Respond to of 2539

I don't entirely agree with Labpuppy; reducing the pipeline by two drugs which were to contribute several years from now can't really be described as "dramatic". Moreover, the overall pipeline for Monsanto has quite a few products. I think the bottom line is few (if any) of the analysts added the contribution for these drugs to estimates in the first place, since they weren't out of the "trials" stage yet.

To: Anthony Wong who wrote (936)	1/21/1999 7:52:00 AM
From: Anthony Wong	Respond to of 2539

Price strategy may help Celebrex get acceptance Sunday, January 17, 1999 By Robert Steyer Of The Post-Dispatch Monsanto Co.'s new arthritis drug, Celebrex, is hitting the market at a time when prescription drug expenses are rising and managed-care companies are looking for ways to balance new therapies with cost containment. This balancing act plays a key role in how companies set prices, and Monsanto seems to have neutralized the problem by placing Celebrex's price at or below those charged by the makers of brand-name competitors. "Some analysts were predicting Celebrex would be priced at $6 to $10 a day, but Monsanto diminished those cost issues," said Michael Flagstad, senior vice president and chief clinical officer for Express Scripts Inc. His St. Louis County-based company distributes drugs to more than 24 million customers through the mail and retail outlets. Monsanto and its drug subsidiary, G.D. Searle & Co., set the average wholesale price at $2.42 to $2.46 a day, enabling Express Scripts to recommend that clients set Celebrex's price close to those of existing arthritis drugs. Drug and medical-product prices usually outpace general inflation as measured by the Consumer Price Index. Drug inflation picked up in the waning months of 1998, although the rates aren't as high as in the 1980s and early '90s. An Express Scripts survey shows that the average member's prescription cost rose by 37 percent between 1993 and 1997. Arthritis drug costs rose 19 percent. But new drugs have entered the market and others are expected soon. That could push up prices. Flagstad had expected Searle to charge a hefty premium above exixting (existing) drugs, forcing Express Scripts to prepare a complex model to guide clients on Celebrex. The model accounted for a patient's age, a person's history of gastrointestinal problems, use of other treatments and response to other drugs. It was based on meticulous research by Express Scripts employees who attended drug and regulatory conferences, combed through medical literature and conducted focus groups. "The day a drug is approved, we want to be ready to make our recommendation to our customers," Flagstad said. Flagstad and other drug industry experts thought the Food and Drug Administration might give Celebrex a superior label, given Searle's research showing its drug produced fewer gastrointestinal side effects than competing drugs. But the FDA said the label must contain a standard warning placed on the arthritis drugs nicknamed NSAIDs - that Celebrex can cause problems ranging from ulcers to bleeding. The agency allowed the label to say some tests showed fewer side effects. The agency said Searle must conduct more tests - which are taking place now - to gauge Celebrex's long-term side effects. Favorable follow-up tests could lead to a simpler label and a stronger marketing ammunition for Searle. Copyright (c) 1999, St. Louis Post-Dispatch stlnet.com