Washington, DC (July 26, 2019) - The American Life Science Innovation Council (ALSIC) released the following statement in response to the Senate Finance Committee's drug price control legislation:
"Legislation that cleared the Senate Finance Committee on July 25 would have a crippling effect on life science innovation if it passes the full Senate. This legislation is based on a price control scheme that would impose inflation caps on Medicare Part B and Part D, alongside changes to Medicaid’s existing Average Manufacturer Price (AMP) formula. This legislation could open up drug developers to rebate obligations exceeding 100% of the price of their medicines. Such obligations are unsustainable for smaller developers and start-ups, and highly detrimental to the R&D budgets of larger companies.
"The American Life Sciences Innovation Council (ALSIC) and most patients strongly support measures to increase accessibility and affordability of coverage for Medicare and Medicaid beneficiaries while ensuring access to the best treatments available. However, the legislation passed by the Senate Finance Committee is destructive to the marketplace, threatens new drug development, and fails to properly address systemic problems within the biopharmaceutical supply chain, including markups by providers, PBMs, and insurers.
"For these reasons, ALSIC opposes the Senate Finance Committee’s legislation and urges the Senate to pursue comprehensive reform that provides genuine cost savings today without sacrificing the new treatments and cures of tomorrow."
Recent ALSIC research reveals overwhelming public support for lowering the costs of drug treatments without limiting innovation or interfering with patient access to the best treatments. The full results of the study are available at AmericanLifeSciences.com.