Transparency key to reforming prescription drug marketplace, says Campaign for Sustainable Drug Pricing
The group also suggested the pharmaceutical industry report increases in a drug's list price annually.
Transparency in how drug companies set pricing is needed to reform the pharmaceuticals industry, The Campaign for Sustainable Drug Pricing claims in a new series of proposals aimed at making the prescription drug marketplace more open and competitive.
The campaign said companies should release details of a drug's unit price, cost of treatment and projection on federal spending before official FDA approval -- the general reasoning being the significant impact pharmaceuticals have on overall health spending.
The group also suggested the pharmaceutical industry report increases in a drug's list price annually, citing reporting requirements for health plan insurers, hospitals and nursing facilities.
"Furthermore," it said, "The Department of Health and Human Services should provide an annual report to the public to include the top 50 price increases per year by branded or generic drugs," as well as top 50 drugs by annual spending, and historical price increases for common drugs, including those covered by Medicare Part B.
The campaign recommended speeding FDA approval of generic drug applications to clear the agency's nearly 4,000-strong backlog to increase and promote competition. The group would also strengthen post-market clinical trials and surveillance, continuing research into drugs' long-term efficacy and side effects.
[Also: 3rd-party assessors having impact on drug price discussions, value, report says]
One pharmaceutical industry practice that should end, the group said, is extending market exclusivity protections by seeking approval for a "new" product that's essentially the same as the original, arguing that prohibiting the tactic would herald more options and lower prices for consumers.
The Campaign for Sustainable Drug Pricing also recommends increasing funding for research on drug pricing, and requiring drugmakers to compare the cost and outcomes of new drugs versus old ones.
Twitter: @JELagasse
