This week, President Donald Trump is expected to outline new policies to deliver on his campaign pledge to bring down drug prices. The move will likely deal another blow to the U.S. pharmaceutical and healthcare sectors at a time when both are already under duress from rising competition, intensified scrutiny on pricing practices, and litigation related to negligent marketing of opioids and drug costs.
Americans spend over $450 billion on prescription medicines a year, three-quarters of which goes towards brand name drugs. But, alternatives in the form of generic drugs, biosimilar versions of biotech drugs, and cannabis-based treatments are taking market share away. Generic drug approvals hit a record high in the U.S last year, a trend that will only accelerate with the FDA’s efforts to fast track the approval process. FDA chief Scott Gottlieb has repeatedly called for closing loopholes that can delay the entry of competing generic and biosimilar drugs.
The industry also faces competition from big tech firms trying to enter their space. But, the biggest threat confronting the industry comes from efforts by the administration and various states to bring down drug prices through regulation. Here are some ideas being tossed around . . .