“Drug prices are too high.”
With these five simple words, Alex Azar II, former president of Lilly USA LLC, and now the Department of Health and Human Services (HHS) Secretary, captured the essence of the drug pricing war. It is a conflict that pits the pharmaceutical companies against doctors, hospitals, insurers, regulators, and consumers. The pharmaceutical industry has fought this war for over two decades, but inevitably, it will lose because both facts and public opinion weigh in favor changing the status quo. In this industry, life science compliance officers have prepared for the confrontation for over twenty years. In this time, these officers have become vetted with unique knowledge and experience that will benefit all stakeholders. This is their Waterloo.
The article will first discuss the pattern of prescription drug price increases from major pharmaceutical companies, the complexities of prescription drug pricing, and political responses to recent major cases involving drug pricing. This is followed by a review of legislative solutions aimed to fix prescription drug price increases. Finally, the article concludes by recommending tools that compliance officers can use to help regulate the price of pharmaceutical drugs.