WASHINGTON — The president who stood in the Rose Garden Friday to deliver an address on lowering prescription drug prices wasn’t the same one who, less than 18 months ago, decried pharma companies for “getting away with murder.”
Instead, standing next to the former president of Eli Lilly USA, a substantially less bombastic President Trump delivered a measured and speedy address — and unveiled a menu of potential policy changes — that hardly touch the industry he once denounced.
There are two distinct issues and they need to be addressed separately. No one want to address them as they know they will loose. They are relate to brand and generic drug pricing.
Brand drugs are really meant for the developed countries where there is a mutually subsidized healthcare system. US prices are out of control. POTUS and team did nothing to fix the issue. In EU countries brand prices are controlled and they are and will stay lower than US prices. In the developing countries no one and I mean no one and that includes billionaires will pay the US or EU prices. Brand companies need to sell and they sell as low as at 10% of the US prices. The revenue generated is marginal but every dollar helps. They do not sell the brand drugs ate the US prices. US will put pressure as in Columbia. However, they cannot put pressure on China and India about 38% of the global population. PBMs are part of the high prices.
With respect to Generic drugs, PBMs and the intermediaries are to blame. What sells in India after 35% profit is sold at twice or higher prices.
Linked are some illustrations.
Comparison of Drugs Prices: US vs. India; Their Manufacturing Costs & Opportunities to Improve Affordability
Opportunities to Lower Drug Prices and Improve Affordability: From Creation (Manufacturing) to Consumption (Patient)
With nothing meaningful offered by DJT team we should be expecting continued shortages and high generic prices. Let’s not kid ourselves.
However, there exists and alternate. That is dependent on Generics. Do they want to control their destiney and help lower drug prices? Most likely the answer is yes. If they don’t do anything as time progresses with the current business model we will see slow increase in drug shortages in the United States.
My perspective and option is discussed in the linked.
Improving Drug Affordability for the United States Populous through Alternate Business Models
We have not too many choices. The question ultimately is do the legislators and politicians give damn to their constituents or to their seat in Congress. If the later is important then the constituents need to find new legislators who will be proactive to do something.
Pharma very well know that sooner or later constituents will die so who cares. Raise the prices and live a happy life. Cheers!
Totally agree. My generic drugs come from India and Italy. Yet both have gone up tremendously in price. The PBMs are the ones jacking the price. However, Insurance companies are starting their own PBMs to compete with the independents. Will this competition help control prices or will they just lower the prices minimally to undercut the independent PBMs. As for Trump and his team doing anything significant lower drug prices, I don’t think that will happen. He’s betting on competition to bring down prices not regulatory control. The lobbyists are to strong and he Doesn’t have the gumption to go against them.
Looks like that Novartis investment paid off.
He knows he won’t get ANY help from Congress unless the GOP is willing to use the nuclear option and unless or until McCain dies or finally resigns. Don’t count on either anytime soon!
The Congressional change that we SO desperately need to step up and remove the medicare inability to negotiate clause won’t cooperate with POTUS out of sheer anger and spite and at the expense of the US population but we are too blind to see that as fact and blame them accordingly
We prefer to blame this high energy POTUS when in reality he can only do what the Congress signs into law before it gets to his desk
Erin, clever phrase – “that the Trump administration has trumpeted” – but, of course, no pun intended?
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