APP Pharmaceuticals Inc., a major supplier of Heparin, will increase prices of the treatment due to rising costs in raw material, testing and additional personnel costs, the company announced today.
Heparin is a widely used anti-coagulant and is made from pigs' intestines, mostly originating from China. The pharmaceutical firm said on Thursday that it is working closely with the U.S. Food and Drug Administration to ensure uninterrupted and safe supplies of the anti-coagulant Heparin for U.S. patients.
In light of the dramatic increase in raw material costs, the need to secure an uninterrupted delivery of API and the increased costs associated with the additional required testing, as well as the hiring of additional employees, APP has communicated to its customers the need to adjust its heparin price. APP said in a statement.
A clinical study made by the FDA found a chemical contaminant in some batches of Baxter's International Inc. Heparin, prompting Baxter to recall most of its heparin drugs. The contaminant, oversulfated chondroitin sulfate, was linked to 81 deaths and hundreds of patients were left with severe allergic reactions in the U.S., according to the FDA.
APP is currently the sole supplier of therapeutic heparin vials to the U.S. market. The company said it has completed testing on lots of heparin raw materials and all the products are contaminant-free and the FDA has confirmed its safety, according to the statement.
Shares of APP Pharmaceuticals rose 1.11 percent to $11.89 in Nasdaq Thursday trading.