Interim staff report from FTC details how prescription benefit managers profit by inflating drug costs to the detriment of patients and pharmacies
WASHINGTON (July 9, 2024) — The Association for Accessible Medicines, the leading trade association for generic and biosimilar manufacturers, today commented on a Federal Trade Commission interim report detailing how leading pharmacy benefit managers use unfair contract terms that may impair or block access to lower cost medicines.
PBM practices too often block patient access to lower-priced generic and biosimilar medicines,
said David Gaugh, Interim President and CEO of AAM. Today’s FTC report is merely further evidence that policymakers must act to ensure that safe and effective generic and biosimilar medicines are more available for patients.
The FTC report points out that, the dominant PBMs often exercise significant control over which drugs are available, at what price, and which pharmacies patients can use to access their prescribed medications.
The FTC also points out that PBMs and brand pharmaceutical manufacturers enter into agreements that exclude lower-cost competitor drugs, like generic and biosimilar medicines, from the PBM’s formulary in exchange for increased rebates from manufacturers.
For media inquiries, contact the Communications department at media@accessiblemeds.org.
About AAM
The Association for Accessible Medicines, your generics and biosimilars industry, is driven by the belief that access to safe, quality, effective medicine has a tremendous impact on a person’s life and the world around them. Generic and biosimilar medicines improve people’s lives, improving society and the economy in turn. AAM represents the manufacturers of finished generic pharmaceuticals and biosimilars, manufacturers of bulk pharmaceutical chemicals, and suppliers of other goods and services to the generic industry. Generic pharmaceuticals are 90 percent of prescriptions dispensed in the U.S. but only 17.5 percent of total drug spending.
About the Biosimilars Council
The Biosimilars Council, a division of the Association for Accessible Medicines (AAM), works to ensure a positive environment for patient access to biosimilar medicines. The Biosimilars Council is a leading source for information about the safety and efficacy of more affordable alternatives to costly brand biologic medicines. Areas of focus include public and health expert education, strategic partnerships, government affairs, legal affairs and regulatory policy. More information is available at www.biosimilarscouncil.org.