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Amoxicillin trihydrate price increase Novartis CEO John Lechleiter explains the company's decision to move its cost-sharing arrangement with government healthcare programs to Medicaid. Novartis CEO John Lechleiter explains the company's decision to move its cost-sharing arrangement Amoxicillin 10mg $183.2 - $0.68 Per pill with government healthcare programs to Medicaid. Photo: Carlos Avila Gonzalez, The Chronicle Buy photo window._taboola = || Generic celexa price []; _taboola.push({ mode: 'thumbnails-c', container: 'taboola-interstitial-gallery-thumbnails-3', placement: 'Interstitial Gallery Thumbnails 3', target_type: 'mix' }); _taboola.push({flush: true}); Photo: Carlos Avila Gonzalez, The Chronicle Image 1 of/3 Caption Close Novartis sets aside billions for price hike 1/3 Back to Gallery Novartis set aside amoxicillin online overnight uk about $8 billion to absorb some of the cost a proposed price climb that could bring its blockbuster antibiotic Keflex to U.S. patients for $5,000 a pop, two people briefed on the situation said Wednesday. The company, which has more than 400,000 employees, is moving its pricing arrangement with Medicaid to help reduce the impact of price increase, said one the people, who did not want to be identified criticizing Novartis. It's unclear how many others will also benefit, or how the arrangement will work, source said. News about Keflex was a surprise to stock market that had been trading at close to a record high Tuesday, with Novartis shares up more than 2 percent in after-hours trading. "It was very disappointing," said Dan O'Brien, an analyst at Morningstar who covers Novartis. "It's a tough pill to swallow." The move, announced late Tuesday afternoon, comes amid scrutiny of the pharmaceutical industry's role in soaring cost of prescription drugs, which has been fueling a public backlash against the pharmaceutical industry and politicians who favor greater access to drugs. The price of Keflex, which is marketed under the name Olysio, would nearly triple in the United States next several years, according to Where to buy propecia in australia a presentation made by the maker of drug to state Medicaid officials this week. Medicaid pays about $5,000 a year for course of treatment with Keflex, a drug whose name translates to "heroic" or "superior," according Novartis. It has been marketed under the name of its primary inventor, Dr. Carl January, who was the chief of division that developed the drug. According to the company presentation given State Health Directors Association, a group that represents about half of U.S. Medicaid plans, the cost of a course treatment would skyrocket by nearly $5,000 a year for each Medicaid patient. That cost rise would affect every adult under 65 who uses Keflex, and every child 18 years old and younger who uses it, Novartis said. Medicaid's new cost-sharing requirements under Obamacare are expected to reduce the total number of prescriptions dispensed by the health insurance program about 10 percent. The change could bring annual cost of Keflex to about $2,650 for a course of treatment, the company said. The company's presentation said that its move, which has been expected for months, was part of a larger restructuring to better manage the cost of Keflex. Those reforms include cutting back on the number of prescriptions, company said. "The decision to offer our medicines Medicaid beneficiaries is driven by several factors," Novartis spokesman Steve Vickers said. "The overall savings from these efforts are expected to be offset by the costs of drug maintenance for Medicaid beneficiaries, especially in states with high Medicaid costs." The number of Keflex prescriptions has risen sharply, with Novartis now dispensing about 5 million a month. The company's earnings have jumped over the past several years, and Keflex sales are expected to exceed $2.5 billion this year. On Tuesday, the company also announced that U.S. Food & Drug Administration had approved its latest round of Keflex for patients, allowing the drug a limited number of patients to be put back on the market. The drug's new label also contains a list of other diseases and injuries that may be prevented or treated through Keflex treatment, Novartis said, a list that is being expanded to include conditions such as diabetes and chronic liver disease. "I'm hoping this will help get patients back on Keflex," said Mark Zeller, CEO of the New York-based company. He declined to comment on the potential impact of Keflex's cost on insurance policies. The cost increases are "a little bit surprising," said John Jackson, an analyst at FBR Capital Markets. He said Novartis had been "very cautious"

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