Gottlieb to Tackle Drug Prices at AEI

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Outgoing FDA commissioner Scott Gottlieb, who was a resident fellow at the American Enterprise Institute (AEI) conservative think tank before being named to head FDA, is returning to AEI to focus on drug prices. In an interview with the Washington Post, Gottlieb said he is interested in trying to determine how to pay for innovative treatments, including gene therapies for diseases such as hemophilia and sickle-cell anemia, that will be administered to patients just once and could have lifelong benefits. Some such treatments are likely to cost several hundred thousand dollars or more.

“The question,” Gottlieb said, “is how we spread out these costs. That’s a whole different paradigm.”

He also said he wants to look into “market failures” that keep drug prices high. For example, he said, in some classes of drugs there are not enough products competing to constrain prices. While he acknowledged that some of it is due to innovator companies “gaming” the system to keep generics off the market, he said there also are new data showing it takes longer to bring a second drug in a particular category to market, especially for orphan drugs or those that are underdeveloped due to their limited potential for profitability. As a result, he said, the first drugs to market in such situations are “monopolies in perpetuity.”

Asked about his time at FDA, Gottlieb said he was most gratified by his efforts to change the agency’s perception of its role in big public health challenges, especially the opioid epidemic. He said it is now widely accepted within FDA that part of the agency’s mission is to try to decrease the rate of new addictions and to look at the potential for illicit use when considering new drugs.

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