#1 ·
Prompted by recent news headlines and TV segments—and given that I've spent quite some time working in the pharmaceutical industry—I feel a profound need to explain something to people that should have been clarified long ago by our sole, mandatory health insurer, Medicare. So, here's the deal: as of September 1st, primary care physicians aren't just being encouraged; they are actually being instructed to prescribe the most cost-effective medications that share the same chemical composition. We're talking about drugs that possess the exact same active ingredient as well as the same excipients. Essentially, when a company first brings a drug to market—after pouring massive resources into years of research on rats and humans—they hold an exclusive monopoly to set the price. But once that patent expires, they have to face reality: other generic manufacturers step in, utilizing those initial research findings (which was the most expensive part of production) to drive the price down. On the Medicare formulary (those "free medications" for patients), we have but not for every single drug , both the original brands and the generics—which are copies that must be 99.9% identical to the original, from the active substance to the inactive ones. Sometimes the original brand is more expensive, but in most cases, the company that pioneered the drug lowers its price to match the generics. Furthermore, it can actually happen that the price of the original brand ends up being cheaper than the generic version .
Another thing: on the drug formulary, alongside the medication itself, you'll see the NAME OF THE MARKETING AUTHORIZATION HOLDER listed here in the US. This means a situation can arise where one manufacturer has their drug on the list, yet they've actually licensed the right to sell that exact same drug to a competitor.
To give you a concrete example, let’s look at atorvastatin, a drug used to lower cholesterol. There are 14 different versions of it on the Medicare list!! 😲 At least 8 of those are priced identically for the same package size. So, which one will a primary care doctor pick? Any of them—they all cost the same.
Now, for those who feel very strongly about using only the "original" brand: okay, if you want Valium, you wouldn't ask for Normabel. But neither of those is actually the original!! Both are diazepams, and only Valium is from Roche (and it hasn't even been on our market for about 30 years) 😁
Innovative "originator" companies, in their hunger to maintain market monopolies, often have their representatives convince people that their drugs are superior—that they have "higher quality" active or inactive ingredients compared to generic firms. That sounds great, except sometimes (and increasingly often) they end up selling the rights to their own drug to another firm. It's similar to what Pfizer did with Zithromax. Where is Zithromax being produced now (under Barun Filipović)? 😂
The crucial point for all of us to remember—and I am a patient myself—is that any medication that has passed the rigorous checks of the European Union agencies, the American Pharmacists Association, and the FDA, fully meets the properties of the very first original drug... even if that original isn't even manufactured anymore. When I had to buy a medication abroad because it wasn't available here, I didn't mind paying $67. Later, when that same drug hit our market (though not on the basic formulary), I was just happy I didn't have to drive to Canada to get it, and I only had to pay $50. Eventually, that same drug appeared on our standard formulary for $20, and I didn't have to pay out of pocket anymore. Thank God for that medicine!!
To make this clearer for anyone reading this: the announcement that primary care doctors must prescribe the cheapest options is likely a message to those of us in pharma not to go chasing the debts the government owes us. As for anyone exploiting a patient's lack of knowledge... well, may their conscience handle that. Just like everything else.....
P.S. Admins, please don't move this post unless you consider it pretentious or malicious.
Another thing: on the drug formulary, alongside the medication itself, you'll see the NAME OF THE MARKETING AUTHORIZATION HOLDER listed here in the US. This means a situation can arise where one manufacturer has their drug on the list, yet they've actually licensed the right to sell that exact same drug to a competitor.
To give you a concrete example, let’s look at atorvastatin, a drug used to lower cholesterol. There are 14 different versions of it on the Medicare list!! 😲 At least 8 of those are priced identically for the same package size. So, which one will a primary care doctor pick? Any of them—they all cost the same.
Now, for those who feel very strongly about using only the "original" brand: okay, if you want Valium, you wouldn't ask for Normabel. But neither of those is actually the original!! Both are diazepams, and only Valium is from Roche (and it hasn't even been on our market for about 30 years) 😁
Innovative "originator" companies, in their hunger to maintain market monopolies, often have their representatives convince people that their drugs are superior—that they have "higher quality" active or inactive ingredients compared to generic firms. That sounds great, except sometimes (and increasingly often) they end up selling the rights to their own drug to another firm. It's similar to what Pfizer did with Zithromax. Where is Zithromax being produced now (under Barun Filipović)? 😂
The crucial point for all of us to remember—and I am a patient myself—is that any medication that has passed the rigorous checks of the European Union agencies, the American Pharmacists Association, and the FDA, fully meets the properties of the very first original drug... even if that original isn't even manufactured anymore. When I had to buy a medication abroad because it wasn't available here, I didn't mind paying $67. Later, when that same drug hit our market (though not on the basic formulary), I was just happy I didn't have to drive to Canada to get it, and I only had to pay $50. Eventually, that same drug appeared on our standard formulary for $20, and I didn't have to pay out of pocket anymore. Thank God for that medicine!!
To make this clearer for anyone reading this: the announcement that primary care doctors must prescribe the cheapest options is likely a message to those of us in pharma not to go chasing the debts the government owes us. As for anyone exploiting a patient's lack of knowledge... well, may their conscience handle that. Just like everything else.....
P.S. Admins, please don't move this post unless you consider it pretentious or malicious.