Economic Advisors Praise FDA on Drug Costs

Share

A White House Council of Economic Advisors report praises efforts by HHS and FDA to respond to the problem of high drug costs. “FDA regulations intended to guarantee safety and efficacy can constitute barriers to price competition for drugs,” the report says. “In few other industries do firms spend over $2 billion to enter the market, which is the current state of affairs for new, innovative drugs going through FDA’s safety and efficacy review process.

As part of the Trump administration’s deregulation effort, the report says, HHS and FDA have launched a series of reforms to better facilitate price competition by streamlining the drug application and review process in a way that effectively lowers barriers to entry while ensuring a supply of safe and effective drugs.

The group says it finds that relative annual price growth for prescription drugs has slowed since 1/2017, and estimates of improved health,” the report says, “even though the methods currently being used to estimate changes in drug prices do not reflect this. Implicit price reductions from new, brand name drugs since 1/2017 are providing an estimated $43 billion in annual benefits to consumers.”

Read more