KaloBios Introduces Transparency Conditions for Drug Prices

Although it has no drugs on the market, KaloBios Pharmaceuticals has announced that it will limit price increases to the rate of inflation or Consumer Price Index, and will do so no more than once a year.

Other elements of its new pricing model include:

• Pricing products at overall cost, plus a reasonable and transparent profit margin;
• Excluding a R&D premium into the pricing of drugs if the company is not conducting any original research;
• Publicly sharing key elements making up the price of a product;
• Consulting stakeholders on a reasonable rate of return; and
• Refraining from aggressive or “predatory pricing policies.”