WASHINGTON, DC (October 31, 2017) – AAM and our member companies are committed to supporting policies that promote competition and help speed the availability of generic and biosimilar medicines to patients.
AAM is fully committed to compliance with all laws and ethical business practices.
Attribution: Jeff Francer, Senior Vice President and General Counsel
The market dynamics of brand and generic drugs are very different. The brand industry is generally controlled by one manufacturer with exclusivity, while the generic industry follows a multi-competitor model with drug prices decreasing as more competitors enter the marketplace. Because of the different competitive factors and financial relationships, brand manufacturer revenues are responsible for 76 percent of the final costs for brand products versus generic manufacturers who are responsible for only 36 percent.
The market dynamics of brand and generic drugs are very different. The brand industry is generally controlled by one manufacturer with exclusivity, while the generic industry follows a multi-competitor model with drug prices decreasing as more competitors enter the marketplace. Because of the different competitive factors and financial relationships, generic manufacturer revenues are responsible for only 36 percent of the final costs for generic products versus 76 percent for brand products.
On October 17, 2017, the Senate Health, Education, Labor and Pensions Committee, under the leadership of Senators Lamar Alexander (R-TN) and Patty Murray (D-WA), convened a hearing to explore why drug prices are so high. The committee asked trade associations representing different parts of the prescription drug supply chain – manufacturers, wholesalers, pharmacy benefits managers and pharmacists – to help it understand what can be done to provide some relief for the millions of Americans burdened by skyrocketing prescription drug costs.
With 89 percent of all prescriptions dispensed in the U.S. last year filled with a generic drug — but those scripts accounting for only 26 percent of total drug costs — generic medicines play a crucial role in the U.S. health care system. To keep lifesaving generics available, it’s important that policymakers understand the supply chain differences between generics and brands.
AAM has joined nine other prominent health care organizations, including America’s Health Insurance Plans, American Hospital Association and American College of Physicians, to send a letter to Capitol Hill encouraging and applauding congressional oversight of Allergan’s sale of its patent for Restasis® to the St. Regis Mohawk Tribe.
“The objective is to win: fairly, squarely, decently, win by the rules, but still win.” – Vince Lombardi
When it comes to prescription medicines, patients win when companies innovate new cures and treatments. Patients also win when more affordable generic versions of those medicines enter the market. Unfortunately, some brand manufacturers aren’t playing by the rules.
Chip Davis has been out speaking with the media about the importance of generic and biosimilar medicines to patients and our economy. He is shining a light on the need to remedy anti-competitive roadblocks facing generics and biosimilars before they make it to market, and the challenges approved drugs meet when presented by consolidation on the demand side.
Patient safety is our industry’s top priority. FDA-mandated Patient safety programs are the guardrails of our industry. These programs protect patients and the trust they put in medicines by ensuring the benefits of medications outweigh potential risks. Unfortunately, some brand companies have engaged in tactics that abuse these patient safety programs.
AAM Applauds FDA’s Commitment to Expanding Access to Affordable Generic Medicines
WASHINGTON, DC (June 27, 2017) – The Association for Accessible Medicines (AAM) today applauded the Food and Drug Administration’s (FDA) commitment to increasing competition in the market for prescription drugs and facilitating the entry of lower-cost alternatives under its new Drug Competition Action Plan.