The FDA's take on the Affordability of Drugs

In 2015, costs of prescription drugs in the USA increased by 13.5%.1 If this trend continues, all branded pharmaceuticals will have 100% increase in their prices in ten years’ time. This steep escalation in drug prices will not only affect consumers, but also insurance companies who will eventually raise their premium prices to cover the additional cost, says Dr Nicola Davies in her exclusive monthly blog for The Pharma Letter.

High drug prices, especially prescription ones, have always been an issue of debate, but this debate has evolved with the changing US political landscape. During a meeting with leading pharmaceutical companies, President Donald Trump suggested that raised competition and “bidding-wars” were the solution to decreasing drug prices.2 His proposal included that US-based drug manufacturers should develop lower priced drugs in exchange for tax benefits. He emphasized that for the government-led programs, Medicare and Medicaid, it is vital to reduce drug prices. President Trump has also put pressure on the Food and Drug Administration by accusing them of delaying approval processes and declaring that many FDA rules should be changed.

Drugs: why such high prices?