Biotech drug costs up 8.7 percent: survey

LONDON (Reuters) - The cost of specialty biotech drugs increased 8.7 percent last year in the United States, three times the rate of inflation, according to AARP, a Washington-based group representing the elderly.

Such drugs -- from companies including Amgen, Genentech, Pfizer and Johnson & Johnson -- are used to treat complex illnesses including cancer and rheumatoid arthritis and are among the most expensive drugs on the market.

Prices range from $5,000 to more than $300,000 a year.

"The skyrocketing cost of specialty drugs is especially tragic for those suffering from diseases like cancer and multiple sclerosis," John Rother, AARP executive vice president of policy and strategy, said in a statement on the group's website here

"These drugs can provide comfort and hope to these individuals and their families. But even the most miraculous drug is useless if people can't afford to take it."

On average in the four-year period from 2003 to 2007, prices for 112 popular specialty drugs increased by 42.9 percent, compared to the general inflation rate of 14.1 percent, the report said.

(Reporting by Ben Hirschler; Editing by Quentin Bryar)