A radical idea to lower the price of biologics
Health policy nerds, get ready for something big. Peter Bach, the well-known expert at Memorial Sloan Kettering Cancer Center, along with his frequent co-author, Mark Trusheim of the MIT Sloan School of Management, are out with a radical proposal today in Health Affairs on how to lower the price of biologics like Epogen, Avastin, and Humira. And the proposal is not about biosimilars.
Instead, Bach and Trusheim argue, the government should simply start regulating the prices of biologics after their patents expire. That will not please former FDA commissioner Scott Gottlieb and others who believe that policies to foster the biosimilar market will ultimately drive prices lower.
But Bach told STAT that's not the right way to approach the problem. “The right standard should be what is the best and most effective way to get price decline while ensuring supply?” he said.
Instead, Bach and Trusheim argue, the government should simply start regulating the prices of biologics after their patents expire. That will not please former FDA commissioner Scott Gottlieb and others who believe that policies to foster the biosimilar market will ultimately drive prices lower.
But Bach told STAT that's not the right way to approach the problem. “The right standard should be what is the best and most effective way to get price decline while ensuring supply?” he said.
STAT Plus subscribers can read what both Bach and Gottlieb have to say here.
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