December 9, 2015
(Washington, D.C.)—Pharmaceutical Care Management Association (PCMA) President and CEO Mark Merritt issued the following statement on the U.S. Senate Special Committee on Aging’s hearing today on “Sudden Price Spikes in Off-Patent Prescription Drugs”:
“The single best way to reduce prescription drug prices is to introduce competition in the marketplace. However, competition is lacking among older, off-patent drugs that treat small populations. This leads to unlimited pricing power and higher profits for certain drug manufacturers.”
To combat this situation, policymakers could take certain steps, including:
- The Food and Drug Administration needs to approve generic drugs faster. Currently, FDA review takes more than three years and there is a backlog of 4,000 applications.
- Create an Abbreviated New Drug Application fast track for generic drugs competing with off-patent brands and create new incentives for them to enter these markets.
- Create a list of off-patent drugs that face no competition.
Watch Mr. Merritt’s testimony at the U.S. Senate Special Committee on Aging’s hearing.