Benefit projected by CMS price setting cannot compare to benefit of generic and biosimilar medicines

 WASHINGTON — The Association for Accessible Medicines, the leading trade association for generic and biosimilar manufacturers, today commented on the recent announcement from the U.S. Department of Health and Human Services regarding a fact sheet published by the Center for Medicare & Medicaid Services (CMS). The announcement aims to identify cost savings related to newly negotiated pricing for 10 select brand-name drugs.

“Today’s announcement by CMS only highlights the folly of this government price setting scheme. CMS projects average savings of 22 percent on these selected brand pharmaceuticals, a figure that pales in comparison to typical savings from generics and biosimilars,” said David Gaugh, Interim President and CEO of AAM. “The data is clear: generic and biosimilar competition is the best way to deliver low-cost drugs for patients and taxpayers. The uncertainty created by the IRA harms generic and biosimilar competition. We call on policymakers to address patent thickets, PBM brand drug rebates and other root causes that delay generic and biosimilar competition, rather than doubling down on government price setting.”