NACDS Backs Trump Administration’s Biosimilar Action, Also Calls for PBM Reform to Lower Drug Costs

The Trump Administration just took major steps toward cutting prescription drug costs for millions of Americans by improving access to biosimilars - especially those deemed "interchangeable." The National Association of Chain Drug Stores (NACDS) is praising the move, saying it gives pharmacists more tools to help patients save money - and is warning that relief for Americans also relies on Congress sending to the President's desk essential pharmacy benefit manager (PBM) middleman reforms.

The U.S. Food and Drug Administration (FDA) announced new draft guidance to make it easier and less expensive for drug makers to develop biosimilars - safe, effective alternatives to higher-cost biologic drugs. The FDA also plans to simplify the processes for biosimilars to be designated as "interchangeable," meaning pharmacists can substitute them for brand-name drugs once approved. This key change would empower pharmacists to initiate substitution of more affordable medications, helping patients get the medicine they need at a lower price, especially for chronic and serious illnesses like cancer and diabetes.

NACDS President and CEO Steven C. Anderson said, "The Trump Administration's action shows real commitment to lowering drug costs for Americans. Making biosimilars easier to approve and substitute is a win for patients, and it's something NACDS has supported for years. To make sure these savings reach families, Congress must act now to fix the broken PBM system - which puts profits over people and which blocks access to affordable drugs."

Anderson continued, "Pharmacists are highly trusted sources of advice on prescription drugs and on how to save money. Our polling shows that Americans rely on their local pharmacy for help with their health and with their wallet. This new FDA policy gives pharmacists more power to help patients choose lower-cost biosimilars. This is further validation of the essential role of pharmacies and pharmacists."

PBMs - middlemen who manage drug benefits for insurers - have been blamed for driving up prices, forcing pharmacy closures, and keeping biosimilars off of drug formularies and out of Americans' cabinets. Since 2018, more than 5,800 pharmacies have closed, and hundreds of millions in patient savings have been lost because PBMs put their own profits ahead of patients and local businesses.

"This action on biosimilars is a huge step, and now it is time for Congress to lock in PBM reforms that will ensure savings show up where they matter - in the pocketbook of Americans," Anderson said.