WASHINGTON, D.C. 鈥� (August 7, 2023) 鈥� Every American should be able to get the medications they need at a cost they can afford. A published today in Health Affairs found that new brand-name pharmaceutical competition resulted in decreases in net prices of existing drugs and reduced drug spending in 10 of the 12 drugs studied.
The analysis reviews data from 2011 through 2019 for 12 therapeutic classes with new drug entrants, finding that pharmacy benefits managers (PBMs) harnessed this new competition to reduce prices and noting that competition was tied to a 4.2% decrease in net price growth and a $10.4 billion reduction in net commercial spending.
The analysis comes on the heels of Big Pharma鈥檚 July price increase, during which 59 manufacturers raised prices on 105 brands, with 9 brands having raised prices by 10%. These price hikes are in addition to Big Pharma鈥檚 increased prices on at least over the first 2 weeks of the year. As part of the January 2023 price increases, 16 brand-name drug companies imposed price hikes higher than 10%.
Big Pharma鈥攁nd only Big Pharma鈥攃ontrols the price of drugs. If they wanted to lower prices, they could do so鈥攖oday. But instead, they take advantage of a broken system 鈥� dramatically increasing prices and blocking affordable generic or biosimilar competition, leaving hardworking Americans their families to feel the consequences every day.
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