Pharma’s Rare Defeat Delivered On Key Issue It Fought Off For Decades
Health policy experts call the Medicare change a "breakthrough" that will have a big impact on the drug pricing landscape. News outlets explore the wins and losses for the pharmaceutical industry in the Senate bill.
Bloomberg:
US Government Poised For Long-Awaited Powers On Drug Pricing
Pharma rarely loses in Washington. For years, the industry has successfully defeated US government efforts to rein in drug pricing, arguing any such moves would prevent companies from developing newer and better medicines. That argument doesn’t seem to be enough anymore. ... Some of the world’s largest drug companies -- including Eli Lilly & Co., AstraZeneca Plc and AbbVie Inc. -- may end up being required to negotiate drug prices with Medicare, the government insurance program for seniors. Starting next year, the legislation would require drug companies to pay back money if they increase prices by more than the rate of inflation. (Peebles, 8/5)
Axios:
Why Generics Oppose Democrats' Drug Pricing Bill
Generic drugmakers are warning that Democrats' plan to let Medicare to negotiate the prices of drugs may undercut competition from lower-cost copycats, inject massive uncertainty into their market and may forfeit potential long-term savings. (Owens, 8/8)
NPR:
What You Should Know About Drug Price Reform
PhRMA, the Pharmaceutical Research and Manufacturers of America, [was] making its case in an ad campaign that the drug-pricing provisions in the bill could lead to fewer new medicines coming to market by "chilling research and development." The trade association also pointed NPR to this industry-funded analysis from Avalere, which estimates the bill could reduce drug manufacturer revenue by $450 billion by 2032.But an analysis by the Congressional Budget Office estimates the effect on drug development would be quite modest. About 15 out of 1,300 drugs would not come to market over the next 30 years – that's about 1% of new drugs. (Simmons-Duffin and Aubrey, 8/6)
CNBC:
The Market's Big Winners And Losers In Climate, Health And Tax Bill
Medicare will only be able to haggle over 10 drugs in fiscal 2026, and new drugs will not be subject to negotiation for nine to 13 years after their market introduction, said Tricia Neuman, executive director of the Program on Medicare Policy at the Kaiser Family Foundation. (Mullaney, 8/8)
