Searching for smart, safe news you can TRUST?

Support safe, smart, REAL journalism. Sign up for our Axios AM & PM newsletters and get smarter, faster.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Searching for smart, safe news you can TRUST?

Support safe, smart, REAL journalism. Sign up for our Axios AM & PM newsletters and get smarter, faster.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Egalet, a small pharmaceutical company, has raised the list price of its pain reliever and anti-inflammatory drug, Zorvolex, by 70%. A 90-pill bottle of Zorvolex now has a price tag of $650, compared with $383 a year ago, according to Elsevier's Gold Standard Drug Database.

The big picture: The drug does not generate a lot of relative sales, but the move is indicative of the pricing power drug companies still have, especially when drugs change ownership. The 70% price hike went into effect Feb. 1 — the day after Egalet completed its acquisition of Iroko Pharmaceuticals, the company that had owned Zorvolex.

Details: Zorvolex's new list price, which was spotted by drug pricing data firm 46brooklyn Research, does not include rebates or discounts.

  • There is little data about sales of Zorvolex, a low-dose pain reliever that received FDA approval in 2013. Iroko canceled an initial public offering that year, before sales officially started.
  • Egalet agreed to acquire Iroko last year, and the resulting company is going through the bankruptcy protection process.
  • Egalet is pushing to increase the total revenue of its 6 drugs, including Zorvolex, to at least $80 million annually.
  • A new sales team "will target pain medicine physicians, primary care physicians, nurse practitioners, orthopedic surgeons and neurologists in the United States with the intent to build awareness and increase adoption of" its drugs, according to a bankruptcy proceeding plan.

The bottom line: Egalet significantly raised the price of a brand-name drug that has generic equivalents right after it bought the drug, and as it prepares to persuade doctors to prescribe more of the drug.

  • Egalet did not respond to multiple phone calls and emails.

Go deeper

Federal Reserve expands lending program for small businesses

Federal Reserve Chairman Jerome Powell at a news conference in 2019. Photo: Eric Baradat/AFP via Getty Images

The Federal Reserve said on Friday it would again lower the minimum loan size for its pandemic-era small business program.

Details: Businesses and nonprofits will be able to borrow a minimum of $100,000 from the facility, down from $250,000 — a move that might attract smaller businesses that don't need as hefty of a loan. Since the program launched earlier this year, the minimum loan size has been reduced twice.

2 hours ago - Economy & Business

How Trump and Biden would steer the future of transportation

Illustration: Eniola Odetunde/Axios

President Donald Trump and Democratic challenger Joe Biden would likely steer automotive policy in different directions over the next four years, potentially changing the industry's road map to the future.

Why it matters: The auto industry is on the cusp of historic technological changes and the next president — as well as the next Congress — could have an extraordinary influence on how the future of transportation plays out.