FDA's Gottlieb on lowering US drug prices: Europe needs to pay more - (CNBC via NewsPoints Desk)

  • FDA Commissioner Scott Gottlieb argued that the pricing strategies of other companies are not sustainable for long-term success, which is leading to higher drug prices in the US, CNBC reported Tuesday.

  • Europeans "do underpay relative to us for branded drugs and that's in part because they do put price controls and utilisation restrictions on those drugs," Gottlieb remarked, adding "but they're overpaying relative to us on generic drugs."

  • Gottlieb's comments come after President Donald Trump characterised foreign countries as paying less than the US for drugs while benefitting from American research efforts.

  • Gottlieb further stated that the problem of "intellectual property appropriation" must be addressed on a trading level, adding that the US has to ensure that companies are rewarded for the risks involved in drug development.

  • "We do think the market-based system gives appropriate incentives and rewards for people to take the risk and innovate," he said. "The problem becomes when there's a lack of competition because of government rules that prevent the competition from taking place."

  • Meanwhile, former Health and Human Services Secretary Tommy Thompson, who praised Trump for addressing drug pricing, cautioned that pushing for higher drug prices in other countries alone would only "increase prices for other people without affecting drug costs in the US.

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