A bipartisan Senate report calls on Congress to take action to prevent huge cost increases on well-established prescription medicines. The Senate Special Committee on Aging reported the results of a year-long investigation this week, saying that some drug firms behaved like hedge funds due to “activist investors,” reports the New York Times.
Chairman of the Aging Committee Sen. Susan Collins (R-Maine) told the Times that the report doesn’t recommend that the government get into the business of setting prices for prescription drugs, but market failures should not be ignored. “The answer is to figure out how we can revitalize the market so that generic drug producers have incentives to compete with companies that are buying up drugs and jacking up prices to make quick, exorbitant profits,” she said.
The report says Congress should seek to increase competition by passing legislation to expedite review and approval of lower-cost generic drugs. Federal officials should be required to act within 150 days on applications for the approval of certain generic drugs, according to the Times.
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