Wednesday, December 18, 2019

HHS moves forward with prescription drug import plan


Rachel Cohrs  December 18, 2019
The Trump administration on Wednesday moved forward with two regulatory actions that would allow states and drugmakers to import prescription drugs, a top healthcare priority for the president's 2020 re-election campaign.
The Food and Drug Administration issued a proposed rule that would allow states to pursue pilot programs to import drugs from Canada and a draft guidance that would allow drugmakers to import their own products and sell them under different drug codes.
Several states are already preparing importation program applications, and Florida and Vermont have already submitted concept papers to HHS. Florida's Republican Gov. Ron DeSantis has been a key figure in pushing President Donald Trump to allow drug importation, and he signed a state law creating an importation program in June.
Vermont, Colorado and Maine have also passed drug importation laws, and HHS officials said they worked with New Hampshire's governor on the regulatory action.
It could be years before patients would actually see imported drugs even if all steps of the plan proceed, but HHS Secretary Alex Azar said the administration is moving as quickly as possible to finalize the regulatory actions.
States wouldn't be allowed to import biologics including insulin, but drugmakers could under the second regulatory avenue detailed in the draft guidance. Azar said the guidance could potentially move faster than the proposed rule.
The second pathway would allow drugmakers to import their own FDA-approved drugs intended for sale in any foreign country, not just Canada. The policy would allow drugmakers to import the medicines under different drug codes, which allows manufacturers to circumvent rebate agreements with pharmacy benefit managers and offer their drugs at lower list prices. Azar said drugmakers had asked for a way to offer drugs without rebates.
"We will have to see if drug companies live up to it," Azar said.
Azar, a former executive at Eli Lilly, is a well-known opponent of rebates in the prescription drug supply chain, and championed a failed policy to pass all rebates to consumers at the point of sale.
The draft guidance only applies to brand drugs, but HHS will solicit comments on providing guidance on a similar importation approach for generic drugs.
HHS is legally allowed to approve importation programs as long as the agency can certify that the program would present no additional safety risk and would save consumers money. It remains unclear from preliminary analyses whether prescription drug importation programs will save substantial amounts of money, and Azar hinted on a call with reporters Tuesday evening that HHS has several options in how it defines the cost savings requirement.
"We will seek comment on how that should be interpreted," Azar said.
Azar has done a dramatic about-face on drug imports in the past year, and called importation from Canada "just a gimmick" in 2018. Azar changed his tune after Trump made importing prescription drugs from Canada a healthcare priority.
Critics of drug importation have voiced concerns about how imported drugs will comply with track-and-trace standards Congress created to ensure the security of the prescription drug supply chain. Former FDA Commissioner Scott Gottlieb, who now serves on Pfizer's board of directors, said the protections were implemented to keep counterfeit drugs from being able to penetrate the drug supply.
"While other solutions are harder to achieve politically, they offer more enduring relief to consumers, without risks that come from weakening (or attempting to waive) controls erected as a result of bipartisan legislation passed in response to significant public health concerns," Gottlieb tweeted Tuesday night.
Amid reported tensions between Azar and CMS Administrator Seema Verma, the administration expedited its timeline for releasing the proposed rule and draft guidance, as Modern Healthcare previously reported.
FDA Commissioner Stephen Hahn was sworn in Tuesday evening, but former Acting Commissioner Dr. Brett Giroir is promoting the importation policy. Giroir is an Azar ally and served as the Assistant Secretary for Health before he was tapped to temporarily fill in at the helm of FDA.

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