2. Defining unjustified drug price hikes
The Institute for Clinical and Economic Review is working on a new annual report that will call out specific drugs with big price increases that are “unsupported” by independent medical evidence, Axios’ Bob Herman: reports.
The big picture: This report is going to put the industry on the spot by making companies explain why their drugs keep getting more expensive well after they’ve been developed, approved and marketed.
PhRMA, the industry’s main trade group, said ICER’s report could be “flawed and inaccurate” but did not respond to questions about how that could be. Generally, the industry hates ICER, which serves as an unofficial watchdog for drug pricing.
Yes, but: The group is taking a deliberative approach to show whether drug companies have had legitimate reasons for raising prices.
- "By identifying drugs with substantial price increases for which there is no basis in new evidence, we hope to make an important first step in providing the public and policymakers with information they can use to advance the public debate on drug price increases,” ICER officials wrote in a document explaining the project.
What to watch: Some big names will likely be in ICER’s report. AbbVie’s Humira and Amgen’s Neulasta, for example, bring in billions of dollars of revenue, and the companies raised the prices of each drug by more than 4% in both 2017 and 2018.