Innovation and price controls can coexist in the United States, COVID-19 contracts show. But drug pricing experts also acknowledge the unique circumstances of COVID-19 could make such contracts hard to replicate and argue that reference-pricing strategies may have limited ability to lower prices.
At least three pharmaceutical companies agreed to reference pricing language in US contracts for COVID-19 vaccines, with one company even accepting language that could give the government unilateral discretion to “determine a fair and reasonable price.”
Such contract clauses weaken some of the drug industry’s core arguments against the use of reference pricing and price controls, health economists told the Pink Sheet, because they highlight that industry can
Pink Sheet editors discuss the appointment of Vinay Prasad as the new director of the Center for Biologics Evaluation and Research and revelations that FDA layoffs now are hindering development of guidance documents.
Agency staff once again have access to the Lexis-Nexis legal and news database, but are still waiting for access to journals, and laid off librarians have not been reinstated.
Recent and upcoming US FDA advisory committee meetings and a summary of the topics covered.
