Our Approach to Pricing, Access and Affordability
WHY WE DO WHAT WE DO
Amgen’s mission is to serve patients. Every day, we work to discover, develop and deliver breakthrough medicines that make a difference to patients’ lives and address some of society’s most serious diseases, including cancer, cardiovascular disease, inflammation and osteoporosis.
Healthcare systems are facing unprecedented challenges, such as increasing prevalence of chronic diseases, health disparities and constrained budgets, while access to and cost of medication is a concern for many patients.
At Amgen, we believe that innovative medicines are the best hope for patients in the fight against serious disease. To realize the full value of our medicines and for the patients who need them most, Amgen is delivering patient access and health system solutions.
DELIVERING PATIENT ACCESS AND HEALTH SYSTEM SOLUTIONS
We’re helping to evolve the health ecosystem by actively engaging with governments, manufacturers, academics, payers, digital health companies, and practitioners. Together, we are working to co-create solutions that transform health systems by not only treating disease after it strikes, but also helping to predict and prevent disease before it occurs. We are also advocating for policies that would help make medicines more affordable and accessible for patients.
Amgen is delivering patient access and health system solutions across three pillars and eight “Amgen Solutions.” Click on each pillar below to learn more about what we’re doing.
Explore Amgen's access and system solutions further:
- Access Approaches, Collaborations, and Lower Cost Treatment Options
- Transformative Treatments, Approaches, and Technology
- Shaping the Future of Healthcare
THE BURDEN OF DISEASE DICTATES INNOVATION
The growing burden of disease not only takes an enormous human toll, but also creates a huge financial burden on society. Innovation is necessary now, more than ever, to prevent taking a step backward in the progress of human health. For many diseases, more effective therapies are needed—key examples are cancer, cardiovascular disease, inflammation and osteoporosis.
RISK OF NOT INNOVATING
More than 800,000 people in the United States die from cardiovascular disease each year—that's 1 in every 3 deaths.1 The total costs of cardiovascular disease in the United States are expected to reach $1.1 trillion by 2035.2 A study published in 2019 looked at where we might go from here and presents a very stark choice.
As this chart shows, if innovation stagnates, the cardiovascular (CV) mortality rate in the U.S. is predicted to significantly increase. However, if innovations are widely adopted and new innovations come along behind them, the CV mortality rate could be significantly reduced, building on the remarkable gains of the past 50 years. It is important to remember that these lines on this chart represent people's lives—that is what’s at stake here.
There is a tremendous opportunity—and an urgent need—to bend the curve of cardiovascular disease, cancer, osteoporosis and the many other serious diseases that affect tens of millions of people around the world. Our aspiration is to be a leader advancing innovative medicines that bend the curve on the rising burden of disease to benefit patients, society and other stakeholders.
- Million Hearts. Costs & Consequences. Accessed June 20, 2023. Circulation. 2021;143:e254–e743.
- RTI International. Projections of Cardiovascular Disease Prevalence and Costs: 2015–2035: Technical Report [report prepared for the American Heart Association]. Research Triangle Park, NC: RTI International; November 2016. RTI project number 021480.003.001.001.
PRICING DECISIONS IMPACTING OUR PRODUCT PORTFOLIO
- Net Price = the actual amount that the manufacturer recoups from selling its product, once fees, discounts and rebates to various stakeholders—including wholesalers, payers, Pharmacy Benefit Managers (PBMs)—are taken out.
- List Price = the price a manufacturer establishes for a product. In most basic terms, it is the original selling price before discounts and rebates are applied.
Each year since 2018, the average net price for Amgen medicines has declined,* but this downward trend has not uniformly resulted in lower costs for patients filling their prescriptions. This is especially true in the United States, where the prescription drug system is complicated by multiple intermediaries that chip away at patient savings. Amgen understands that the cost of prescription drugs is a concern for many people, and we are committed to the responsible pricing of our medicines.
Learn more about Amgen’s Approach to Responsible Pricing.
*This content was updated as of June 2023 based on data through June 2022 reflected in the 2022 ESG Report.
OVERSIGHT OF OUR APPROACH TO PRICING, ACCESS AND AFFORDABILITY OF MEDICINES
The Corporate Responsibility and Compliance Committee of our Board of Directors receives regular updates regarding our approach to pricing, access and affordability of our medicines, as well as on the activities of our Amgen Safety Net Foundation and other philanthropic activities that provide access to our medicines across the globe.
OUR COMPLIANCE WITH DRUG PRICING LAWS
One of our core Company values is “Be Ethical,” and part of being ethical is being compliant. At Amgen, compliance is adhering to the laws and regulations that govern what we do, including those that govern healthcare pricing and reimbursement.
This material contains forward-looking statements that are based on the current expectations and beliefs of Amgen. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including any statements on the outcome, benefits and synergies of collaborations, or potential collaborations, with any other company (including BeiGene, Ltd., Kyowa-Kirin Co., Ltd., or any collaboration to manufacture therapeutic antibodies against COVID-19), the performance of Otezla® (apremilast) (including anticipated Otezla sales growth and the timing of non-GAAP EPS accretion), the Five Prime Therapeutics, Inc. acquisition, the Teneobio, Inc. acquisition, the ChemoCentryx, Inc. acquisition, or the proposed acquisition of Horizon Therapeutics plc, as well as estimates of revenues, operating margins, capital expenditures, cash, other financial metrics, expected legal, arbitration, political, regulatory or clinical results or practices, customer and prescriber patterns or practices, reimbursement activities and outcomes, effects of pandemics or other widespread health problems such as the ongoing COVID-19 pandemic on our business, and other such estimates and results. Forward-looking statements involve significant risks and uncertainties, including those discussed below and more fully described in the Securities and Exchange Commission reports filed by Amgen, including our most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K. Unless otherwise noted, Amgen is providing this information as of the date of this material and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
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