Inflation Reduction Act Would Stifle Biosimilar Competition and Savings

Wednesday August 3, 2022

WASHINGTON, DC (August 3rd, 2022) – Writing for Forbes, Wayne Winegarden from the Pacific Research Institute makes it clear that the drug price control provision in the Inflation Reduction Act would be devastating for pharmaceutical innovation. By arbitrarily capping costs of some brand-name biologics, this bill would make it nearly impossible for biosimilar manufacturers to recoup the large investments required to make a biosimilar and cause a chilling effect in biosimilar development, driving up costs for patient and employer-sponsored health plans. Winegarden correctly notes that biosimilar competition generates significant savings already (more than $12 billion since 2015) and that stifling this competition through price controls will counteract any potential savings the Inflation Reduction Act might create.

“Contrary to its name, the Inflation Reduction Act would increase prescription costs by stifling biosimilar competition and innovation,” said Craig Burton, Executive Director of the Biosimilars Council. “The price control proposals would actively harm millions of patients by rewarding brand drug manufacturers with a perpetual monopoly. Congress should reject this proposal and instead support solutions that will sustainably lower drug prices by encouraging generic and biosimilar adoption.”

MEDIA CONTACT:
Allen Goldberg
202.249.7110


About the Biosimilars Council

The Biosimilars Council, a division of the Association for Accessible Medicines (AAM), works to ensure a positive environment for patient access to biosimilar medicines. The Biosimilars Council is a leading source for information about the safety and efficacy of more affordable alternatives to costly brand biologic medicines. Areas of focus include public and health expert education, strategic partnerships, government affairs, legal affairs and regulatory policy. More information is available on our about page.

About AAM

AAM is driven by the belief that access to safe, quality, effective medicine has a tremendous impact on a person’s life and the world around them. Generic and biosimilar medicines improve people’s lives, improving society and the economy in turn. AAM represents the manufacturers and distributors of finished generic pharmaceuticals and biosimilars, manufacturers and distributors of bulk pharmaceutical chemicals, and suppliers of other goods and services to the generic industry. Generic pharmaceuticals are 90 percent of prescriptions dispensed in the U.S. but only 20 percent of total drug spending.

Stay Informed

Subscribe for Updates

Receive our monthly Biosimilars Bulletin and other important updates on biosimilars in the U.S.

  • This field is for validation purposes and should be left unchanged.

Get Involved

The Council is involved in a number of events that focus on advancing biosimilars in the United States. Click on one below to learn more:

Register Now! November 7-9 | North Bethesda, MD

GRx+Biosims is the premier scientific and regulatory event for the generics and biosimilars industry. This year’s conference will be held in-person for the first time since 2019!