Did you ever wonder why generic drugs never seem to come out or are still expensive? Well, I discussed some collusion and price fixing before here. Now the FDA is “making public a list of 52 brand-name medicines that generic-drug companies have had trouble getting samples of, due to restrictions from the manufacturers. Generic companies need large quantities of the brand-name drugs to test them for bioequivalence so they can get their own versions on the U.S. market.”
They do this by improperly “using the safety measures as a pretext for blocking generic companies’ path to entry.” Basically, they stop the process right in its tracks and this has been allowed for years. This administration wants this stopped and I agree.
It is a weird thing to help your competitor undercut your price. It is also weird for the government to shame them into complying. I still don’t care. I think all bets are off when dealing with any member of the Medical Axis of Evil. My favorite part of the article, though, was this:
Members of the Senate and House on both sides of the aisle support a bill, known as the Creates Act, that would give generic companies a legal cause of action in such circumstances. In the Senate, there are 22 co-sponsors, 11 each from both political parties.
Sen. Patrick Leahy (D., Vt.), the bill’s chief sponsor, said, “The best way to lower the price of prescription drugs is to meaningfully increase competition. Our bill would do that.”
Uh, what? Meaningfully increase competition? Yes! Finally, some sense from the left on this. No subsidy. No free lunch. Competition.
Or did I miss something here?