Blue Dogs Endorse Bill to Prevent Dramatic Drug Price Hikes

Washington – Today, while the House Oversight Committee holds a bipartisan hearing with officials from Mylan, titled “Reviewing the Rising Price of EpiPens,” the Blue Dog Coalition endorsed a bill that could prevent dramatic price hikes like that of the EpiPen. H.R. 4784, the Lower Drug Costs Through Competition Act helps streamline the FDA approval process on generic drugs, and encourages competition by providing incentives for more generics to come to the market.

The bipartisan bill was introduced by co-chair of the Blue Dogs Congressman Kurt Schrader (OR-5) and Republican Congressman Gus Bilirakis (FL-12) in March, after hedge fund manager and Turing Pharmaceuticals CEO Martin Shkreli raised the price of a lifesaving drug by more than 5000% overnight. Last month, another pharmaceutical price hike came under fire when Mylan, the sole manufacturer of the EpiPen, raised the price of the drug by more than 400%, to upwards of $600 per pack.

“The dramatic price hikes we’ve seen in recent years to life saving drugs like the EpiPen are outrageous,” said Rep. Schrader. “For the people who rely on these drugs, it is truly a matter of life or death. Parents are being forced to choose between taking on debt, and potentially putting their child’s life at risk. This bill will increase competition in the pharmaceutical industry, improving access to generics and keeping costs down. If we don’t act now, these unreasonable price hikes are sure to continue, putting more lives needlessly and senselessly at risk.”

“Too many families live without access to the medicine they desperately need,” said Congresswoman Kyrsten Sinema. “This bipartisan legislation will increase competition and ensure patients have affordable access to these life-saving drugs."

“Millions of Americans are seeing steep price increases in drugs they have been taking for years because there is an absence of competition in the prescription drug market,” said Rep. Brad Ashford (NE-02). “By accelerating the approval process of generic versions of drugs, we can stimulate competition in the market and allow patients to access the lifesaving medications they need at prices they can afford.”

“The U.S. has some of the highest prescription drug costs in the world. And that’s before companies jack up prices or use shadow pricing techniques for life-saving medicine,” said Rep. Jim Cooper (TN-5). “We’re just not getting a good deal, and Congress has been dragging its feet for years. People should get the best possible price for prescription drugs. They shouldn’t be denied access to medicine that may save their lives.”

Mylan purchased the rights to the EpiPen nine years ago; however, because the EpiPen has been around for decades, it is off-patent under Hatch-Waxman, meaning generic equivalents are allowed to come to the market. In recent years, two generics have attempted to push through the bureaucracy of the pricey and lengthy FDA application process with no success.

H.R. 4784 will require action on applications to market generic drugs within six months of submission when there is no equivalent generic drug already available, or for drugs that are on the drug shortage list. It also creates incentives for pharmaceutical companies to develop more generics. Currently, there is no generic equivalent to the EpiPen on the market and epinephrine holds a spot of the drug shortage list.