(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.