Action on Sun Pharma Stepped Up by US Congress
Published By : 20 Oct 2014 | Published By : QYRESEARCH
The U.S. legislature is currently heading into the next stage of investigating abnormal increases in drug costs made by 14 pharma companies. The list includes the Indian Dr Reddy’s as well as Sun Pharmaceuticals.
The U.S. Congress has already approached Sylvia Burwell, the U.S. health secretary, requesting her to take immediate and aggressive action to resolve the issue.
A legislature committee wrote on October 2, letters to 14 different company heads. The letter stated an investigation that will seek details regarding the recent hikes in costs of several generic drugs that are made available in the U.S. market. The letters claimed that the drug prices have been increased by 390 to 8,200 percent over 10 different products.
A number of major Indian drug companies are already under investigation by the U.S. Food and Drug Association (FDA). A letter written to Sylvia Burwell states that the legislation would prefer to know what measures the FDA is undertaking to resolve the issue. They would also like to know the any steps the FDA will take in the near future. They are requesting a description to the agency authorities about any measures that are being taken and whether legislative action may be required.
The drug companies are to reply to the letter by Thursday.
The U.S. is a free market regarding drug pricing. Pharmaceutical costs in the U.S. are decided mostly by competition. The insurance companies will negotiate on the prices in collaboration with drug manufacturers. There are however, no restrictions or caps on the costs of both generic along with new and innovative medicine.