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You want to know why drug prices keep going up? Please read this convo which took place during a recent trip to India.
I asked a top executive at a leading generic company on why they can’t come into the US market & sell for $1000 a drug that sells for $15000 in the US
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I asked a top executive at a leading generic company on why they can’t come into the US market & sell for $1000 a drug that sells for $15000 in the US
1/👇
He said: 3 PBMs control what’s on formulary in USA. When a generic is allowed entry, we place bids along with other generic companies. Bids are secret. If we price drug too low or don’t give the best rebate to the PBM we won’t be on formulary. A low price will hurt our chances 2/
In what kind of crazy system do middlemen who are supposed to look out for the best interest of the patient seek a HIGHER list price and a HIGHER rebate as a key determinant of which drug is on the formulary? Where the pressure is to keep price HIGH not low!! @aholdenj 3/
He closed by saying we already have to go through 10 times more work to satisfy FDA than we do for other countries. If we are going to make such an effort and still not end up on the formulary - it’s not worth our time or effort. @peterbachmd @Loftus @DavidP4AD @BERector 4/
I’ll add: this is no small generic company. It is a reputable company that does a lot of generic business in the US.
My question is : If we have a system where the very companies that can give us affordable drugs are reluctant to enter the market - what is the solution?
My question is : If we have a system where the very companies that can give us affordable drugs are reluctant to enter the market - what is the solution?
