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Senate Passes Key Generic and Biosimilar Drug Competition Measure

The Senate unanimously passed a bill that would bar so-called “patent thickets” and similar measures that brand drug makers use to stop the swift entry of generics and biosimilars. Drug makers would be barred from using multiple patents and lawsuits to stop generic and biosimilar approval. As well, the companies could not essentially “re-patent” drugs by making cosmetic changes. The Federal Trade Commission (FTC) would also have power to impose limits on patent litigation on biologics.

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#drugpricing #branddrugmakers #biosimilars #generics

https://insidehealthpolicy.com/inside-drug-pricing-daily-news/advocates-applaud-senate-passage-patent-thicket-reform-bill

FTC To Sue Big Three PBMs

The Wall Street Journal (WSJ) is reporting that the Federal Trade Commission (FTC) will sue the Big 3 pharmacy benefits managers (PBMs) – United’s Optum, Cigna’s Express Scripts, and CVS’ Caremark — over anti-competitive behavior.  The suits could center on the vertical integration with their sister health plans, which means the PBMs favor corporate-owned pharmacy assets at higher costs to the public. The suit may also challenge rebate deals with brand drug makers and concomitant formulary restrictions. The move likely means more pushes on Capitol Hill to reform PBMs.

While some of this may be true, I continue to believe that brand drug makers are the biggest problem in terms of high drug prices.

Additional article: https://www.fiercehealthcare.com/payers/wsj-ftc-sue-pbms-over-drug-pricing-tactics

#pbms #drugpricing #ftc #antitrust

https://www.healthcaredive.com/news/ftc-to-sue-pharmacy-benefit-managers-caremark-express-scripts-optumrx-wsj/72102

New FTC Investigation Report Targets PBMs

In its initial report on an antitrust investigation into the role of pharmacy benefits managers (PBMs), the competitiveness watchdog Federal Trade Commission (FTC) says PBMs have vast power that disadvantages consumers and independent pharmacies. It reports the following:

• Consolidation and vertical integration of health plans and PBMs have impacted price and accessibility and led to anti-competitive behavior.
• Independent pharmacies suffer broadly from the trends in the PBM industry.
• It criticized narrow and preferred network strategies, formulary and rebate arrangements, and specialty pharmacy arrangements.
• It noted that 80% of all PBM business is controlled by just three major entities – United’s Optum, CVS’ Caremark, and Cigna’s Express Scripts.
• Arrangements with owned entities, including retail pharmacies, mail-order pharmacies, and specialty pharmacies, hurt consumers.

The major PBM lobbying group pushed back on the findings vigorously.  While PBMs need reform and more transparent approaches, I feel the FTC has put the entire onus for high prices and anti-competitive behavior on PBMs and not brand drug makers. The FTC has adopted the same whipping boy mentality as Congress.

Additional articles: https://www.fiercehealthcare.com/payers/ftc-report-pbms-may-urgently-require-potential-regulation and https://www.modernhealthcare.com/politics-policy/pharmacy-benefit-managers-pbms-higher-prices-ftc-cvs-cigna-unitehealth and https://thehill.com/policy/healthcare/4762024-federal-trade-commission-report-pharmacy-middlemen-price-hikes/

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#pbms #drugpricing

https://www.healthcaredive.com/news/ftc-pharmacy-benefit-manager-investigation-interim-report/720814