GPhA briefs Congress on generics savings
WASHINGTON — The Generic Pharmaceutival Association on Monday briefed Congress about the ways generic drugs and biosimilars can drive savings in terms of healthcare costs, while following up on a recent Department of Health and Human Services issue brief that found a majority of generic drug prices dropped in 2014.
“It is clear that generics are a long-term solution to rising health costs,” GPhA president and CEO Chip Davis said. “That’s why it is puzzling that Congress chose to increase the Medicaid rebate for generic drugs as part of the October 2015 budget agreement. This provision will add significantly to generic manufacturers’ costs, making it much harder to produce generics across many therapeutic classes.”
Davis pointed out that an increased rebate has the potential to lower the number of generic competitors on the market, which could drive costs up by making beneficiaries rely on branded products.
GPhA suggested five ways that Congress can ensure high use of generics and a healthy amount of competition in the generics market:
Make sure that the FDA is fully resourced and able to deal with its backlog of 3,800 generic drug applications and reduce the amount of time it takes for approvals to come through;
Increase use of generics among low-income Medicare beneficiaries — which GPhA estimates could save $17.7 billion over 10 years;
Pass the FAST Generics Act to avoid manipulation of Risk Evaluation and Mitigation strategies that can keep generics from coming to market;
Work to create a framework for biosimilars that will improve patient access and approval time; and
Repeal section 602 of the 2015 Bipartisan Budget Act.
“GPhA will continue to highlight the undeniable role of generics in lowering health costs,” Davis said. “Together with Congress, the Administration, regulators, stakeholders and others we can do more to ensure the generic pharmaceutical industry continues to enhance patient access and drive patient savings for years to come.”