GPhA President Responds To Recent Generic Drug Cost Criticism

Ralph Neas, president of the Generic Pharmaceutical Association (GPhA) issued a statement in response to Washtington’s recent probe into the rise of generic drug costs and proposed generic drug legislation. Neas claims that the analysis “mischaracterizes” the generic drug marketplace, and he makes alternative suggestions on how the FDA and generic industry might work together to improve patient care at a lower price.

In October, Senator Bernie Sanders (D-VT) and Representative Elijah Cummings (D-MD) launched an inquiry into the sudden spike in generic drug prices, and released figures revealing that certain drugs had experienced price hikes anywhere between 388 percent (Nitropress) to as much as 8,281 percent (Doxycycline Hyclate) over the course of just a few years.

The New York Times (NYT) reports that executives from three of the generic drug makers listed in the Sanders/Cummings inquiry were invited to a hearing this week but did not attend.

In the GPhA statement, Neas criticizes the scope of the inquiry and points out that the report focuses on only 10 drugs out of 12,000 generic drugs. While some drugs have experienced price inflation, he says, many have not. According to Neas, competition has driven down the price of many widely-used generics.

Neas cites numbers from the IMS Institute for Healthcare Informatics, which found that generic drug savings were increasing, and that generics had reduced healthcare costs in the U.S. by $239 billion in 2013 and had saved more than $1.46 trillion over the past decade.

NYT reports that at a hearing this week, Sanders and Cummings proposed legislation which would require generic drug companies to issue rebates to Medicare and Medicaid if their prices rose faster than the rate of inflation — the same provisions required of brand name drug makers.

According to Neas in a statement released specifically to government officials, “The proposed bill reflects a basic misunderstanding of the pharmaceutical market place and attempts to impose brand pharmaceutical provisions on generic drugs. This effort is misguided and will threaten patient access to affordable medicines.”

Instead, Neas proposes that the FDA work closely with generic drug makers to speed up the review of newly developed generics and enact regulations for biosimilars. This, he says, will increase competition and drive down prices for consumers.

Additionally, Neas calls on Congress to review the ways in which brand name drug makers are abusing safety guidelines and exploiting loopholes to block the development of generic alternatives.