US lawmakers introduce legislation to reduce biologics prices, cut exclusivity period

US Representative Jan Schakowsky and US Senators Sherrod Brown and John McCain have introduced legislation aimed at helping to lower prices of life-saving drugs and save taxpayers billions of dollars over the next 10 years.

The Price Relief, Innovation and Competition for Essential Drugs (PRICED) Act would foster competition and provide opportunity for more biologics to enter the marketplace and drive down costs. In the same way the entrance of generics helped increase competition and boost access to more affordable prescription drugs, an increased number of biologics and equally effective “biosimilars” will provide additional competition in the marketplace and make life-saving drugs more affordable for consumers.

The lawmakers says many biologics cost $100,000 or more. High prices, which are often a result of a lack of competition in the market, are unreasonable for patients, insurance companies, and taxpayers. The PRICED Act would reduce exclusivity for biologics in the USA from 12 years to seven years. This will lead to the development of more medicines – including biosimilars – and help more of these life-saving drugs enter the marketplace, they claim.