Sudden rise in prices for off-patent prescription medication prompts nationwide concern

The U.S. Senate Special Committee on Aging met on Dec. 9 to hear testimony regarding the recent spike in prices for off-patent prescription drugs.

The investigation focuses several companies: Retrophin Inc., Rodelis Therapeutics, Turing Pharmaceuticals and Valeant Pharmaceuticals. The prices for the medications produced by these companies has increased up to 40 times, making them unaffordable for patients and doctors alike.

Testimony was provided by witnesses Erin Fox, director of the Drug Information Service, University of Utah; Dr. David Kimberlin, professor and co-director of Pediatric Infectious Diseases, University of Alabama; Gerard Anderson, professor at Johns Hopkins University; and Mark Merritt, president and CEO of the Pharmaceutical Care Management Association.

While producing new prescription medications requires research and development, clinical trials and approval by the Food and Drug Administration (FDA), non-patent medications do not require further investigation to develop the drug. The current manufacturers of these medications can raise the price of the drugs without accountability.

”Let me close by noting that some of the companies that have been the focus of our investigation look more like hedge funds than they do pharmaceutical companies," Sen. Susan Collins (R-ME) said. "As one industry expert I recently spoke with put it, 'these companies are to ethical pharmaceutical companies as a loan shark is to a bank.' One goal of our bipartisan investigation is to understand why such companies can impose egregious price increases on off-patent drugs they have acquired and what policies we should consider to counter this disturbing practice."