Senate Releases Report on Substantial Drug Price Increases
US Senators recently released a report, entitled “Sudden Price Spikes in Off-Patent Prescription Drugs: The Monopoly Business Model that Harms Patients, Taxpayers, and the US Health Care System,” outlining the findings of a bipartisan drug price gouging investigation.
“The skyrocketing prices of prescription drugs affect every American family, particularly our seniors” Sen Susan Collins (R-Maine), chairman of the Senate Aging Committee, said in a press release. “This report is the culmination of the Senate Aging Committee's year-long, bipartisan investigation into the egregious price increases on a number of decades-old drugs acquired by pharmaceutical companies that act more like hedge funds. We must work to stop the bad actors who are driving up the prices of drugs that they did nothing to develop at the expense of patients just because, as one executive essentially said, ‘because I can.’”
The pricing report outlines the investigation of drug manufacturers who purchased drugs without patent-protection and competition, and then increased the generic drug’s price substantially. The report included findings on investigations of four companies: Turing Pharmaceuticals, Retrophin, Valeant Pharmaceuticals, and Rodelis Therapeutics. The report concluded that these companies were exploiting a similar business model, which involved targeting acquiring generic drugs without competition and then increasing their prices beyond reason.
The report suggests expediting the FDA approval process for generic drugs, in order to get competitive drugs to the market quicker. The report also suggested allowing importation of generic drugs from abroad when there is a lack of competition on the US market.
“The hedge fund model of drug pricing is predatory, and immoral for the patients and taxpayers who ultimately foot the bill—especially for generic drugs that can be made for pennies per dose,” Sen Claire McCaskill (D-Missouri), said in the press release. “We’ve got to find ways to increase competition for medicines and ensure that patients and their families aren’t being gouged.” —David Costill
