We carry a wide selection of generic tablets and capsules.
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The Federal Trade Commission on Wednesday investigated the role of drug wholesalers and companies that buy drugs for U.S. health care providers in the shortage of generic drugs that account for the majority of Americans’ prescriptions. It was announced that there was.
The move comes after unprecedented shortages of critical medicines last year, from injectable cancer drugs to generic drugs (cheaper versions of brand-name drugs), forced hospitals and patients to ration medicines. That’s what I received. Issues ranging from manufacturing quality control to spikes in demand can cause supply issues.
But the Biden administration is focusing on other players in the drug supply chain to uncover the “root causes and potential solutions” to ongoing shortages.
In a joint request for information, the FTC and Department of Health and Human Services are seeking public comment on contracting practices, market concentration, and compensation for the two types of intermediaries. These are group purchasing organizations, which mediate the purchase of medicines for hospitals and other health care providers, and pharmaceutical wholesalers, which purchase medicines from manufacturers and distribute them to health care providers.
The request for information alleges that these intermediaries abuse their market power to drive down the price of generic drugs to the point that manufacturers are forced to discontinue production without making a profit, and that competing suppliers It will be investigated whether it is discouraging competition in the market.
“The FTC is looking at this market because on one side of the market you have patients who are desperate for the right drug and are willing to pay a very high price for it if they can. On the other side, you have patients who are desperate for the right drug, and some manufacturers are only getting a few dollars per dose of the same drug,” FTC Director of Public Affairs Doug Farrar told CNBC. Ta.
“So the negative outcomes for patients are why the FTC wanted to investigate this market,” he added.
The FTC and HHS did not name the specific companies. However, Vizient, Premier, and HealthTrust are among the largest group purchasing organizations for hospitals. cenkora, cardinal health and McKesson It is responsible for approximately 90% of prescription drug distribution in the United States.
The FTC says the public has 60 days to submit comments on Regulations.gov.
Group purchasing organizations and wholesalers have received limited attention on Capitol Hill, even though controlling high drug costs has become a key priority for lawmakers in both the House and Senate.
As part of an effort to reduce drug costs, lawmakers It has called for greater transparency about pharmacy benefit managers, which negotiate drug discounts on behalf of insurance companies and other payers, about their business practices.
PBMs say manufacturers are to blame for high drug prices, while drug companies say they are forced to raise the list price of their products through kickbacks and fees collected by these intermediaries.
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