Here are six things to know.
1. The FDA already prioritizes the review of generic versions of brand-name drugs to increase competition. Generics, since they have the same active ingredient and aim to provide the same relief as a brand-name drug, can be interchanged and quickly reviewed because they have a similar effect on the body as the brand-name drug.
2. White House advisers proposed an idea to expand this expedited review policy to brand-name drugs that treat similar diseases but cannot be interchanged like generics.
3. The idea to fast-track reviews of certain brand-name drugs was outlined in a report from the Council of Economic Advisers.
4. The White House council report explained that creating this expedited review process for brand-name drugs would “serve as a new pro-competition pathway that would enhance therapeutic price-competition by providing expedited entry into monopoly markets.”
5. The CEA report outlined research that shows drug prices fall when there are more generics. However, the report did not cite any research indicating the relationship between the number of drugs that treat a certain disease in the market and the price of those drugs.
6. STAT explained the mere presence of other drugs to treat the same disease doesn’t necessarily equate to lower prices.
More articles on supply chain:
Celgene Executive Chairman Bob Hugin abruptly steps down: 5 things to know
As flu rages throughout Florida, Tamiflu supplies run low
Pfizer’s opioid-filled syringes hit another manufacturing snag: 6 things to know
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.