Goodlatte Statement at Hearing on Competition in the Health Care Marketplace

Chairman Goodlatte: Today’s proceeding marks the fourth in our series of hearings focused on competition in the health care marketplace.  Now, the Committee turns its attention to the pharmaceutical industry and the drugs that are used in the treatment of opioid overdose and addiction. Competition in the addiction medicine markets, like the pharmaceutical market as a whole, involves a delicate balance.  On the one hand, we want to encourage pharmaceutical companies to invest in expensive research and development in order to bring innovative and life-saving drugs to market.  On the other hand, we also want to encourage sufficient competition to ensure that there is an appropriate check on consumer prices.  Today’s hearing will explore what policies help to maintain this balance and whether it has been upset. Like other drugs in the market, addiction medicine has been the subject of media reports detailing steady and sometimes dramatic price increases.  Oftentimes, however, these reports can be misleading, glossing over nuance to achieve a sensational headline.  Today’s hearing will allow us to explore whether prices have indeed increased materially and what competitive factors impact the ultimate cost to consumers. The issues that have been raised in connection with the addiction medicine market parallel the issues facing the pharmaceutical market at large.  For example, two of the most predominant drugs used in the treatment of the opioid epidemic have existed for over fifty years.  Yet, new variations of these old drugs and increasingly inventive applications to administer the drugs continue to come to market, often accompanied with high price tags.  Persistent innovation is one of the hallmarks of a free market and should be celebrated. However, there have been allegations that some companies may be using this innovation as a disguise to cover up the manipulation of regulations to preclude competitors from coming to market.  Clearly, this is anticompetitive conduct that should be swiftly and harshly punished.  I look forward to hearing the witnesses’ views on this issue and whether our existing antitrust laws are equipped to address any such behavior. I also look forward to hearing what policies influence competition in the addiction medicine market, including the impact on competition of regulatory oversight by the Drug Enforcement Agency, the Food and Drug Agency, and the Department of Health and Human Services.  To the extent regulation is necessary, we should ensure that the addiction medicine market, and the entire pharmaceutical market, includes proper incentives that foster a competitive environment. No one wishes for a friend, family member or a loved one to succumb to addiction.  For those that are forced to face the opioid epidemic head on, we should strive to encourage a competitive market for the drugs that can help them back on the path towards recovery.  Thank you, Chairman Marino, for holding this important hearing and I look forward to discussing these topics with our excellent panel of witnesses. ###