Geee Posted February 26, 2014 Share Posted February 26, 2014 The Hill: The price of generic drugs would skyrocket under a proposal from the Food and Drug Administration (FDA) that would open manufacturers to lawsuits for failures to warn consumers about the potential side effects, according to a new report. In the study released earlier this month that contradicts the FDA's numbers, conservative economic consulting firm Matrix Global Advisors found that the cost of producing generic drugs would increase by about $4 billion annually for the industry, or $1.16 per prescription, which would be passed down to consumers. Industry groups say the FDA has not fully considered the costs of the rule. They argue it could prove to be too costly for manufacturers and insurers to comply with and drive some of them out of the market, reducing consumers' access to generic drugs and raising prices. But consumer advocates say the rule is necessary to protect patients and hold manufacturers accountable for the generic drugs they make. "This rule jeopardizes the cost savings that generic drugs bring to the market," Matrix Global Advisors CEO Alex Brill said this week at an event hosted by the Law & Economics Center at George Mason University. "If costs go up, prices go up." Link to comment Share on other sites More sharing options...
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