US RESISTANCE TO DRUG PRICE RISES

The US pharmaceutical industry will continue to face growing resistance from the federal government and also from private forces towards above-average price increases, according to analyst Hemant Shah of HKS & Co.

In support of this view, Mr Shah notes the comments made by Food and Drug Administration Commissioner David Kessler at the recent House Appropriations Agriculture hearing (Marketletter April 6), on the rapid rise of drug prices. In his testimony, Dr Kessler stated that because certain products are so highly-priced, it was possible that many patients might not be able to afford them.

Despite the Commissioner's declaration that "it is none of the FDA's business to review and comment on economic issues," Mr Shah says Dr Kessler's comments clearly reflect the underlying policy of the agency and of the "entire" Department of Health and Human Services. Moreover, in the past Dr Kessler has indicated that the FDA would ensure that generic versions of most off-patent blockbuster drug products would be approved first, regardless of their position in the line of Abbreviated New Drug Approvals awaiting approval, he says.