Pfizer will now refund the cost of a cancer drug if it doesn’t work

In an unusual bid to address prescription drug costs, Pfizer (PFE) is promising to offer warranties for its Xalkori lung cancer treatment and will refund the entire cost to any patient and health plan if the medication fails to work within the first three months.

The drug maker last June quietly began what it calls a pilot program, which runs through the end of this year, for anyone who is covered by Medicare or commercial insurance, or pays by cash. Called the Pfizer Pledge, the program has escaped notice because the company has, so far, not publicized the effort beyond describing the details on its web site.

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