AAM Opposes the Lower Health Care Costs Act

Legislation will harm generic drug competition

WASHINGTON DC (December 9, 2019) – “AAM opposes the Lower Health Care Costs Act, because its inclusion of the BLOCKING Act will reduce generic drug competition, result in fewer affordable generic medicines being available to patients and thus will keep drug prices high. AAM has offered numerous alternatives to this section of the bill throughout the process.

A forthcoming study by Matrix Global Advisors (MGA) finds that the BLOCKING Act, by creating the risk that first filers could lose their 180 days of exclusivity through no fault of their own, would reduce generic firms' incentives to pursue patent challenges, thereby delaying generic entry and savings. MGA concludes that if even one generic launches later as a result of these changed incentives, it would, on average, cost the U.S. health care system $1.7 billion.

Unfortunately, inclusion of the BLOCKING Act will eviscerate the single most successful incentive available to generic drug developers to bring new, more affordable generic medicines to patients. The 180-day incentive encourages generic drug manufacturers to take on the costs and risks associated with challenging brand-name drug patents. Without this incentive, the substantial savings resulting from generic competition – a hallmark of the successful Hatch-Waxman amendments in place for decades – will be jeopardized. Absent necessary revisions to the BLOCKING Act that would ensure generic companies are still incentivized to develop safe, effective and affordable treatments for America’s patients, AAM encourages all members of Congress to oppose the Lower Health Care Costs Act.”

Attribute to: Chester "Chip" Davis, Jr., AAM President and CEO

Rachel Schwartz

About AAM

AAM 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 and distributors of finished generic pharmaceuticals and biosimilars, manufacturers and distributors 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 22 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.




Association for Accessible Medicines


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