Biden Bill Will Hurt Generic Drugs: Analysis
Citizens Against Government Waste health and science policy director Elizabeth Wright says the Biden administration’s Build Back Better Act includes provisions from the Elijah E. Cummings Lower Drug Costs Now Act that will hurt the generic drug industry. In an Inside Sources article reprinted by the American Institute for Economic Research, Wright says the bill says the HHS secretary can negotiate prescription drug prices, “ignoring its use of foreign price controls, excise taxes, and inflationary rebates to determine drug costs.” She writes that advocates for the proposal ignore the harm price controls will have on U.S. leadership in global pharmaceutical research and development and overlook the “severe damage it will cause to generic and biosimilar manufacturing.”
According to Wright, generic drug company CEOs and investors will not know which drugs will ultimately be price-controlled in the future and will be hobbled by the bill’s price controls, “leading to fewer generics reaching the market and patients likely paying more than they otherwise would have.”