FDA May Fast-Track New Drug Reviews In Return For Companies Lowering Drug Prices: Report

The U.S. Food and Drug Administration may reportedly fast-track new drugs from pharmaceutical companies that “equalize” the cost of their medicines between the US and other countries.

FDA Commissioner Marty Makary floated the idea in an interview on Bloomberg Television. Makary said that price adjustments may give companies another way to obtain “national priority vouchers” under the program announced last month.

As part of the program, the FDA Commissioner will issue vouchers that drug developers may redeem to participate in a program that will shorten the review time from approximately 10-12 months to one or two months after the company submits its final drug application.

According to the initial plan, the agency will distribute a limited number of vouchers to companies aligned with the U.S.’ national priorities in the first year, the FDA stated, without naming any specific companies.

“We can issue a national priority review voucher for companies that are promising to equalize the price” between the US and what other foreign countries pay, Makary said.

“We want to incentivize good behavior in the marketplace, and these priority vouchers are worth a lot of money,” he added while noting that the program could be used as a means to even out drug prices with those currently charged in places like Europe.

Trump signed an executive order in May intended to match U.S. drug prices with those of other developed countries in order to lower domestic healthcare costs.

“The United States has less than five percent of the world’s population and yet funds around three-quarters of global pharmaceutical profits,” Trump said.

“Americans will no longer be forced to pay almost three times more for the exact same medicines, often made in the exact same factories. As the largest purchaser of pharmaceuticals, Americans should get the best deal.”

Makary, on Friday, did not detail how drugmakers have to adjust prices to qualify for a voucher, Bloomberg said. The report added that it is also unclear how much of an impact the vouchers would have and that the FDA has typically avoided entering drug pricing in the U.S.

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