FDAnews Drug Daily Bulletin

Gasp — ASP!  (Drug Wonks Blog)
When drug shortages occur, the first reaction from the government is to pound industry into oblivion with regulations, fees and penalties. “Finally someone is focusing on the perverse economic incentives of average sales price (ASP) as a key factor behind the problem,” blogger Peter Pitts writes. Sen. Orrin Hatch (R­–Utah) introduced legislation, the Patient Access to Drugs in Shortage Act, dealing with the economic causes of drug shortages. He touches on some subjects, including price stability, Medicaid/340B rebate exemption, extended exclusivity and a drug shortage database. “This last point may sound innocuous — but it’s crucial,” Pitts adds. “There are many players in the drug shortage game — not just innovator pharmaceutical companies and the FDA. There are generics manufacturers, hospitals, group purchasing organizations and physicians.”