PhRMA Statement on Prescription Drug Costs
Washington, D.C. (August 2, 2012) — Pharmaceutical Research and Manufacturers of America (PhRMA) Senior Vice President Matthew Bennett issued the following statement today:
“Today’s report by Generic Pharmaceutical Association (GPhA) documents one of the many benefits achieved by new medicines developed by biopharmaceutical research companies. Cost savings attributable to generic drugs represent one stage of the prescription drug lifecycle. Such savings are possible because innovator biopharmaceutical research companies – the most research-intensive sector in the U.S. economy – produce medical advances through pioneering scientific work and long-term, expensive investments. Over time, these innovative new medicines lead to generic copies that patients use at low cost for many years. Without the development of new medicines by innovator companies, there would be neither the new medicines essential to progress against diseases nor generic copies.
“GPhA’s release offers important information about why we need to maintain incentives that support the development of new medicines. These incentives are vital to renewing the cycle of progress against disease and affordability.
“Cost trends for prescription medicines show spending on medicines have declined to historically low levels. According to IMS Health, prescription drug spending grew 0.5 percent in 2011, and is projected to grow by 0 - 3 percent annually through 2015.
“Importantly, despite their small share of health costs – relative to other health services – medicines are yielding major health advances. For instance, prescription medicines have played a key role in the dramatic declines in death rates resulting from cancer, heart disease and HIV/AIDS in recent years. Our companies’ continued commitment to innovation is the driving force behind such medical progress.”
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading pharmaceutical research and biotechnology companies, which are devoted to inventing medicines that allow patients to live longer, healthier, and more productive lives. PhRMA companies are leading the way in the search for new cures. PhRMA members alone invested an estimated $49.5 billion in 2011 in discovering and developing new medicines.
Find PhRMA Online:
• Website – http://www.phrma.org
• facebook – www.facebook.com/PhRMA
• Blog – www.phrma.org/catalyst
• Twitter – www.Twitter.com/PhRMA and www.Twitter.com/PhRMApress
• YouTube – www.youtube.com/PhRMApress
For information on how innovative medicines save lives, visit: http://www.innovation.org
For information on the Partnership for Prescription Assistance, visit: http://www.pparx.org
For information on ensuring the flow of medicines during public health emergencies, visit http://www.rxresponse.org
Contact: Jenni Brewer
Posted: August 2012