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.