US generics group GPhA 'deeply disappointed" with Obama Administration's health care proposal

Following the announcement yesterday by US President Barack Obama of a package to resolve the stymied health care reform, which included provisions for stopping the so-called pay-to-day deals between research-based and generic drugmakers (see separate story today), Kathleen Jaeger, president and chief executive of the Generic Pharmaceutical Association (GPhA) expressed grave concern about the proposal.

'We are deeply disappointed that the administration has chosen to include measures to ban settlements of generic patent challenges in this renewed health-care reform bill. A recent analysis by the Royal Bank of Canada (RBC) found that the ability to settle patent challenges dramatically increases opportunities for consumer savings. The RBC analysis demonstrated that in cases where companies litigated to a conclusion, generic medicines came to market prior to patent expiration in only 48% of cases. In those cases where settlements resulted, generics came to market prior to patent expiration in 76% of cases. Clearly, the ability to settle patent cases increased the opportunity for consumer savings. Simply put, a ban on settlements will delay savings from more affordable generic medicines,' Ms Jaeger argued.

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