# Drug prices: FDA considers encouraging generics

**URL:** https://forum.fudiabetes.org/t/drug-prices-fda-considers-encouraging-generics/1173
**Category:** Insurance
**Created:** [June 7, 2017, 3:40pm UTC](https://forum.fudiabetes.org/t/drug-prices-fda-considers-encouraging-generics/1173 "2017-06-07T15:40:22Z")
**Posts on this page:** 1
**Page:** 1

<div class="post-metadata">

### Author: ![Michel](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.fudiabetes.org/michel/32/387_2.png) [@Michel](https://forum.fudiabetes.org/u/Michel)
#### Post date: [June 7, 2017, 3:40pm UTC](https://forum.fudiabetes.org/t/drug-prices-fda-considers-encouraging-generics/1173/1 "2017-06-07T15:40:22Z")

</div>

The FDA head says he is looking into what we can do to encourage competition from generics:

[https://www.bloomberg.com/news/articles/2017-06-05/drug-prices-become-target-for-fda-as-chief-expands-agency-s-view](https://www.bloomberg.com/news/articles/2017-06-05/drug-prices-become-target-for-fda-as-chief-expands-agency-s-view)

A few nuggets I found that I thought were of interest:

> The first generic drug that hits the market will “only slightly lower” the price compared to the brand, according to an FDA analysis. A second generic competitor approved will slash the price to almost half that of the brand version while subsequent approvals will drop the cost to 20 percent of the brand.

> The action on generic drugs would be a shift from the agency’s current stance. Presently, the FDA prioritizes applications for the first company to apply for a generic version of a brand-name product. The agency hasn’t typically considered drug costs as a major policy, and is barred from taking them into account when deciding whether to approve a new drug.

> […] The agency is also looking at a plan to eliminate within a year the backlog of 2,640 generic-drug applications, Gottlieb said.

It is quite interesting to find out that you need several generic drugs to lower prices significantly. I had not realized it – but, retrospectively, looking at it from the point of view of game theory it makes total sense.

I had no idea that the FDA is not allowed to look at price. Good to see they are now looking at ways to improve the generics pipeline. I am not sure if insulin analogues are considered generics, since they are biologicals though: very complex organic molecules.