AAM Statement on Trump’s Drug Pricing Ruling – Rebates and Most Favored Nation Model

WASHINGTON, DC (November 20, 2020) — AAM and its Biosimilars Council commend the Administration for today’s effort to remove perverse rebate incentives now blocking competition in the U.S. prescription drug marketplace, but further action is necessary to modernize the Medicare Part D program and ensure that patients and taxpayers realize the full value of lower cost generic and biosimilar medicines. Generic and biosimilar medicines are the proven solution to the burden of expensive brand drugs, expanding access and reducing costs for patients and taxpayers while protecting incentives for pharmaceutical innovation.

Yet, the so-called “Most Favored Nation” proposal would undermine future competition from these FDA-approved medicines. We encourage Congress and the Administration to promote savings through generic and biosimilar competition by modernizing the Medicare Part D program, supporting incentives for biosimilar and generic adoption, and ensuring that generics and biosimilars are able to enter the market at the earliest possible date. We look forward to working with the Biden administration and Congress to develop solutions to ensure that America’s seniors and taxpayers are getting the most out of each dollar they spend.


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 20 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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