The latest round of price negotiations has captured the attention of industry insiders and consumers alike, signaling potential shifts across the market landscape. As companies and suppliers sit down at the bargaining table, the stakes are high—not just for the parties directly involved, but for the broader market ecosystem influenced by these negotiations. Most noteworthy of mention are the numerous approved and pipeline biosimilar drugs that add complexity to the outcome.
The attached article starts with a grabber line….. “Government price negotiations under the Inflation Reduction Act may hinder biosimilar development, impacting drug costs and patient access to affordable therapies.”
By negotiating a new fixed price for a brand drug Medicare patients are unable to benefit from the lower cost biosimilar drug when one is approved. Most of the drugs being negotiated do not yet compete with an approved biosimilar. In short, thia stymies achieving a potential best price through generic and biosimilar competition
The article goes on to offer insight on the long term implications for access and cost suggesting “There is a reluctance of firms to develop biosimilars due to the risk of government price negotiations will hinder the full realization of biosimilar cost savings.” The article also explains a ‘Biosimilar Void’ and offers several policy change recommendations.
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