WASHINGTON, D.C. – Senator Chuck Grassley of Iowa, ranking Member of the Senate Judiciary Committee, made the following comment after the Supreme Court agreed to hear a case that will determine if brand-name drug companies can pay generic drug companies to keep their products off the market.
Grassley, along with Senator Herb Kohl of Wisconsin, has legislation that would deter “pay-for-delay” settlements in which brand name drug companies settle patent disputes by paying generic drug manufacturers in exchange for the promise of delaying the release of the generic version of a drug into the market. Under the legislation, these anti-consumer pay-off agreements would be presumed illegal and the Federal Trade Commission (FTC) would have the authority to invalidate the agreements.
The Congressional Budget Office (CBO) estimates that the Preserve Access to Affordable Generic Drugs Act (S. 27) would accelerate the availability of lower-priced generic drugs and generate $4.785 billion in budget savings between fiscal years 2012 and 2021. CBO also estimates that earlier entry of generic drugs affected by the bill would reduce total drug expenditures in the U.S. by roughly $11 billion over the decade.
“Pay-for-delay settlements between brand name and generic drug companies hurt consumers who don’t have access to affordable medications, and they hurt taxpayers who pay for prescription drugs for federal health care programs. The delays put the interests of drug companies above the interests of consumers. The Supreme Court’s decision to hear the case is a positive step, and in the meantime I’ll continue to press for our legislation.”
The reason drug companies want to retain their brand in the market is because they need to recoup the costs that go into the research and development of the drugs. You have to understand just how much money is poured into research that never results in drugs that make it to market. Also, the testing and approval process with the FDA is painstaking and expensive to undertake. The length of time a drug is under patent is sometimes not long enough for the drug companies to recoup their costs. And now the drug companies will have to pay a premium to the government for every brand name drug they sell, costing taxpayers even more. It will drive up the cost of new drugs even more for the short term they have a patent on them. And yes, drug companies make a lot of money, but they need a lot of profit to keep researching new drugs and treatments.
Companies are in business to make money. If they can earn more money by keeping their product off the market then by selling it, that is just good businessmanship. Just because people do not like it should not make it wrong.
Kudos to Chuck for this step in the right direction.
This is Washingtons way of eliminating the poor people.
Anything for the dollar and to hell with the people.
Payoffs! – Hmmmmmm – did theyn get this idea from the lobbyists in DC ???? Tar and feathers for all !