Strange Bedfellows: Generics Firms Join Big Pharma In Opposing Price Negotiation Legislation
Concerns that Medicare drug price negotiation provisions in the Build Back Better legislation would upend the generic and biosimilar industries might resonate with legislators more than complaints from branded drug companies.
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David Gaugh, AAM’s executive VP of sciences and regulatory affairs, was named the interim CEO, making him the fourth person to run the association since February 2020.
ASP metric used in Medicare, and often in commercial insurance, for reimbursement of physician-administered drugs is an important factor in the sales arc for biosimilars. Price negotiations under IRA could bring their own margin-squeezing pain to pharmacy-benefit biosimilars.
The policy is welcomed by biosimilar stakeholders, but amounts to a relatively small increase. To qualify for the revised payment, a biosimilar must have an average sales price that is less than its reference drug’s ASP and not all do.