January 13, 2016 Morayea Pindziak

Alliance Life Sciences Examines Impact of Social Media and Legislation on Generic Price Drug Inflation and Price Gouging

Download “Money Talks: Social Media and Inflation Penalties for Generic Drugs”


SOMERSET, N.J. / LONDON – January 13, 2016 — Alliance Life Sciences, a leading global life sciences consultancy and technology provider, builds upon its industry leadership with the release of its white paper, “Money Talks: Social Media and Inflation Penalties for Generic Drugs.” Authored by Robert Blank, senior consultant, Alliance Life Sciences, the paper highlights the role of social media in spurring the passage of Section 602 in the Bipartisan Budget Act of 2015 (BBA), imposing the same inflation penalties for generics as those placed on branded drugs.


“Public outrage surrounding allegations of price gouging, was enough to motivate government officials into this swift action,” says James Burke, chief strategy officer, Alliance Life Sciences. “While this legislation won’t prevent price inflation activities, it is clear that as the public becomes more informed and more vocal via social media, pharma practices will be subject to ongoing scrutiny. Companies must be vigilant of community sentiment in response to drug pricing. Failing to have a proactive plan to explain their actions could not only affect a company’s public image, but ultimately the bottom-line.”


Beyond public perception, future price decisions will need to undergo thorough analysis to understand the impact of this inflation penalty on a product’s overall gross-to-net profitability.


“Manufacturers should also re-evaluate their overall pricing strategies, given that long-term ramifications of inflation penalties on generic medications could significantly affect the profitability of these drugs,” adds Burke. “The timing and nature of concessions associated with product launches will have a significant impact on baseline product pricing, and could subsequently affect the profitability of the product throughout its lifecycle.”


Alliance Life Sciences offers strategies and solutions designed specifically to address these issues.


About Alliance Life Sciences   

Alliance Life Sciences is a global innovator that delivers peace of mind and unlocks business value with unique solutions to complex commercial problems. With over ten years of dedicated life sciences experience, our worldwide team of experts provides insights into contracting, pricing, and access. We serve mid-market life sciences companies and eight of the top-10 pharmaceutical manufacturers. Contact: 866-581-4850 or www.alscg.com.



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