WASHINGTON — AAM and its Biosimilars Council commend the Administration for today’s effort to remove perverse rebate incentives now blocking competition in the U.S. prescription drug marketplace, but further action is necessary to modernize the Medicare Part D program and ensure that patients and taxpayers realize the full value of lower cost generic and biosimilar medicines. Generic and biosimilar medicines are the proven solution to the burden of expensive brand drugs, expanding access and reducing costs for patients and taxpayers while protecting incentives for pharmaceutical innovation.
Yet, the so-called “Most Favored Nation” proposal would undermine future competition from these FDA-approved medicines. We encourage Congress and the Administration to promote savings through generic and biosimilar competition by modernizing the Medicare Part D program, supporting incentives for biosimilar and generic adoption, and ensuring that generics and biosimilars are able to enter the market at the earliest possible date. We look forward to working with the Biden administration and Congress to develop solutions to ensure that America’s seniors and taxpayers are getting the most out of each dollar they spend.