WASHINGTON (January 17, 2025) — The Association for Accessible Medicines, the trade association for generic and biosimilar manufacturers, today commented on the release of fifteen medications added to the list for Medicare drug price negotiations.

“By including drugs with generics and biosimilars in development in the 15 drugs selected for negotiation, CMS highlights a central flaw in the IRA price setting scheme,” stated John Murphy III, President and CEO of AAM, “Rather than build on the proven success of reducing prices through generic and biosimilar competition, the IRA creates a short-sighted government price setting scheme that undermines investment in lower priced generics and biosimilars. It is critical that the incoming Administration work with Congress to put America’s patients first by supporting generic and biosimilar development and competition.”

The U.S. Department of Health and Human Services released a list of fifteen medications today. Many, if not all, of the selected drugs have generic or biosimilar equivalent medications in development. Although policymakers claimed that Medicare price setting would only apply if a generic or biosimilar had not launched, this hid the fact that the legislation is designed so that the price control scheme applies before a generic or biosimilar would have the chance to be approved and marketed, thus undermining future investments and competition. Because generic and biosimilar medicines provide greater savings than Medicare price setting, the price control scheme will result in less and slower generic and biosimilar competition and, thus, lost savings for America’s patients.

 

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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. 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 13.1 percent of total drug spending.

About the Biosimilars Council

The Biosimilars Council, a division of the Association for Accessible Medicines, works to ensure a positive environment for patient access to biosimilar medicines. The Biosimilars Council is the 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, government affairs, legal affairs, and regulatory policy. More information is available at biosimilarscouncil.org.