Here is an example of the absurd scapegoating that Big Pharma is doing:
"As part of PBMs’ lobbying plan, they list $100 billion in government savings that could be proposed to Trump and Congress as a way to get drug costs down -- and deeply cut drug and biotech profits. That includes shortening the time during which drugmakers have exclusive sales rights on new treatments and raising taxes on the industry."
Anyone know what time frame the proposed $100B savings would extend over?
What this lobby calls "exclusive sales rights" are patents & they're there to allow pharma manufacturers who've spent $2B+ over a decade or more (not counting the $ on discontinued/failed projects) to actually recoup & turn a profit.
On that note; I submit that they should add an extra year to the "period of exclusivity" in exchange for lower gross margin introductions of branded products & price increases capped to inflation (admittedly difficult to legislate & monitor) & a requirement that the branded producer introduce a generic version 2 years before patent expiration to further allow them to earn a ROIC while lowering drug spend.
The industry should probably get proactive now, on the introduction of generics to its own products.
The last point I raise (in my carefully cherry picked paragraph from the article 😲) is in regards to the lobby's suggestion that taxes would be a solution (taxes, really?)
Express Scripts shows an 8.x% GM & 4.x% OM which doesn't seem egregious.
Pharmas post significantly higher GM's & OM's.
Who's taking the biggest risks with owners capital?
I'm OK with Novo Nordisk dropping prices to remain competitive but how much is enough?
How about some transparency in the rebates (a breakdown on every sales receipt showing list & net prices along with how much of the difference is charged to the patient IN BOLD.)
Heyyyyyy wait a minute - this administration campaigned against regulations.....