TIMING THE INFLATION REDUCTION ACT — One possible unintended consequence of Medicare drug price negotiations is an incentive for drugmakers to time the filing of new drug and biologic applications to the FDA so that new medicines can get extra exclusive time on the market before they can be considered for negotiations. John Murphy, chief policy officer at trade lobby Biotechnology Innovation Organization, said a number of law firms are already eyeing the Inflation Reduction Act’s annual selection date for the list of drugs Medicare will negotiate prices on when advising drugmakers on portfolio planning. If enough drugmakers alter their behavior, that could lead to a “bolus of applications” during certain periods of the year, according to Eva Temkin, a pharmaceutical attorney at King & Spalding and former director for policy at the FDA’s Office of Therapeutic Biologics and Biosimilars. CMS and PhRMA say they are not worried about the potential issue. Review timelines can be unpredictable, and the FDA may extend review periods if logjams arise. “Drugmakers can try, but if they delay filing to try to get past February and then there is an extension or something, they’ve just burned time on the market where they could have been making money in the hopes that they might gain a few more months in a decade,” said Remy Brim, a lobbyist at BGR Group and former senior FDA policy adviser to Sen. Patty Murray (D-Wash.). “That seems like a hard trade.” OPEN SEASON ON PBMS — A dueling set of events Thursday brought into focus the growing momentum for legislation this year targeting the so-called middlemen of the pharma industry. One took place on Capitol Hill and the other at a nearby hotel where PhRMA CEO Steve Ubl lambasted the rebating practices of pharmacy benefit managers. “I want us to look back and say that today was the day that we started to get this fixed,” said Senate Finance Chair Ron Wyden (D-Ore.) at a hearing in the morning. He's working with the panel’s ranking member, Sen. Mike Crapo (R-Idaho), on a bill — but lobbyists and staffers tell Megan it’s still in the early phases. Taking action on PBMs, which negotiate discounts on medicines with drugmakers and manage drug benefits for insurance plans, has become one of the few bipartisan efforts gaining traction in Congress. “The system is broken and needs to be reformed,” Ubl said. “Three PBMs control 80 percent of the market; they’re vertically integrated with health plans. They do play a role in restraining costs, but there’s very little evidence that the fruits of their efforts are actually translating into lower costs for consumers.” But PBMs argue that they play a key role in negotiating down drug costs and want lawmakers to pursue a bipartisan set of patent bills that could boost competition in the pharmaceutical marketplace, with the industry's main trade group saying that the Finance Committee largely ignored the role drugmakers play in high prices. “I liken [PBMs] to the Rodney Dangerfield of health care; they get absolutely no respect,” Lawton Robert Burns, a professor at the Wharton School of the University of Pennsylvania, said at the hearing. “They're the whipping boys — in other words, the people who take the rap and get spanked for evil doings of others.”
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