WASHINGTON — Generic drugmakers lobbied hard against Democrats’ new law empowering Medicare to negotiate prescription drug prices. Giving the government such power seemed like an admission that generic medicines don’t do enough to keep costs down.
Now that the changes are law, however, industry experts and lobbyists acknowledge the package is more of a mixed bag for generics makers like Teva and Sandoz, not an existential threat. Though it’s too soon to tell, the law could actually end up encouraging more generic competition, boosting the $435 billion industry.
The change in tone is yet another indication that government price controls are not likely to damage the generic and brand drug industries nearly as much as lobbying groups for those industries claimed during the debate over the new law, known as the Inflation Reduction Act.
This article is exclusive to STAT+ subscribers
Unlock this article — plus daily intelligence on Capitol Hill and the life sciences industry — by subscribing to STAT+.
Already have an account? Log in
Already have an account? Log in
About the Author Reprints
To submit a correction request, please visit our Contact Us page.
STAT encourages you to share your voice. We welcome your commentary, criticism, and expertise on our subscriber-only platform, STAT+ Connect