Potential for REMS Misuse ‘Substantial’: Study
A Matrix Global Advisors paper estimating the market for REMS (Risk Evaluation and Mitigation) and other restricted distribution programs concludes that while there are valid public health reasons for restricted access programs for certain drugs, brand manufacturers can use the programs to block generic competition, with a direct negative impact on consumers and taxpayers. “Compared to the size of other prescription drugs that have generated policymaker and public ire,” the report says, “the potential for misuse of REMS and other restricted access programs is substantial.”
The Matrix analysis finds that the restricted access drug segment comprises 74 drugs with total 2016 sales of $22.7 billion. Of the 74, 41 are restricted by REMS programs, with sales totaling $11.5 billion. The remaining 33 drugs are restricted by non-REMS programs, with total sales of $11.2 billion in 2016. Seven of the drugs (four with REMS and three with non-REMS restrictions) have sales over $1 billion, representing just over 50% of total sales.
“Given the size and scope of the pharmaceutical market subject to a REMS or similar distribution restriction, this issue warrants attention on the scale of other high priced drugs that have generated headlines and congressional inquiries,” the report concludes.