PhRMA Statement on ASPE Observations on Trends in Prescription Drug Spending Issue Brief
Washington, D.C. (March 8, 2016) — Pharmaceutical Research and Manufacturers of America (PhRMA) spokesperson Holly Campbell issued the following statement:
"This issue brief ignores the tremendous value medicines provide to patients including many that offer improved treatment options for conditions that previously had few or no options such as cancer and multiple sclerosis. Better use of these medicines could help improve millions of lives and avoid needless hospitalizations. Patients are living longer, healthier lives thanks to innovative medicines developed by biopharmaceutical companies. The cancer death rate in the U.S. has fallen 22 percent since its peak, new hepatitis C therapies cure more than 90 percent of treated patients and the death rate from cardiovascular disease has dropped 46 percent since 1991.
“Many factors may cause prescription drug spending growth to fluctuate in a given year including the number of new medicines approved and how many lose patent protection. Spending on prescription medicines is the same share of health care spending now as it was in 1960 due to a competitive marketplace for medicines where large, powerful purchasers negotiate aggressively and generic utilization rates are nearly 90 percent. Between 2009 and 2013, more than $105 billion in brand medicines faced generic competition. By 2018, another $115 billion of U.S. brand sales will face similar exposure. At the same time, critical advances continue in areas such as cancer, rare diseases and heart disease.”
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading innovative biopharmaceutical research companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier, and more productive lives. Since 2000, PhRMA member companies have invested more than $600 billion in the search for new treatments and cures, including an estimated $51.2 billion in 2014 alone.
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