Davis was asked about reported spikes in generic prices
, most notably between 2012 to 2014, spiked that Tong cited in his allegations against the industry.
Throughout 2013 and 2014, soaring generic prices
sparked consternation at drugstores and among state and federal lawmakers.
They said that Drug Pricing Policy 2015 is being implemented and uniform generic prices
for new registration are being fixed under the policy.
Despite this, the trend toward deflating generic prices
appears to have accelerated as companies have more aggressively undercut each other's prices.
(38) FTC analysis of the launch of an authorized generic to compete with the first-to-file generic concluded that competition between the two tended to drive generic prices
down even beyond the 180-day exclusivity period and substantially impacted the revenues of the first-to-file generic.
If enacted, generic prices
will plummet to levels so low you won't even worry about what percentage your insurance company pays.
(1) Mylan received a 180-day exclusivity period under the Hatch-Waxman Act (162) (although Mylan's sales at relatively high generic prices
are irrelevant to whether Warner Chilcott substantially reduced the number of sales and profits that Mylan would have made absent the product hops);
Walgreens and Valeant also entered into a separate agreement under which Valeant will distribute more than 30 branded products--where generics are available--in the dermatology, ophthalmology, gastrointestinal and neurology/other therapeutic areas through Walgreens at generic prices
. The discounts, which will be available beginning the second half of 2016, are expected to range from 5% to 95%.
In looking at rising generic prices
, Committee Chairman Lamar Alexander (R-Tenn.) focused on generic approval times, noting that generic manufacturers estimated that it took on average 48 months for a generic to get approval in 2014, up from 30 months in 2011.
Walgreens and Valeant also have entered into a separate agreement under which Valeant will distribute more than 30 branded products, where generics are available, in the dermatology, ophthalmology, gastrointestinal and neurology/other therapeutic areas through Walgreens at generic prices
, giving doctors the ability to make the branded product available to patients at generic prices
Although spikes in generic drug prices have been in the news in recent months, generic prices
rose just 6.2 percent during that period.
For these drugs after generic entry, high and increasing brand prices partly offset low and decreasing generic prices
. Sales volume appears to increase substantially following generic entry, consistent with the usual assumptions regarding the negative relationship between prices and quantity demanded.