US Senators Kohl and Grassley urge 'Super Committee' to encourage generic competition

As the USA’s Joint Select Committee on Deficit Reduction - dubbed the “Super Committee” - works to adopt deficit reduction measures, Senators Herb Kohl (Democrat, Wisconsin) and Chuck Grassley(Republican, Iowa) are urging the panel to include a bipartisan bill that cuts costs by encouraging competition from generic drugs.

The Super Committee, made up of six Democrats and six Republicans, was appointed as part of a compromise between Congress and the White House aimed at resolving months of long standoff in Washington. It is tasked with crafting a formula to cut the projected growth of the USA’s national debt by more than $1,000 billion over 10 years and is set to report its recommendations in late November.

The Preserve Access to Affordable Generic Drugs Act (S 27) 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 keeping the generic version of the drug off the market, the Senators contend. Under the bill, these anti-consumer pay-off agreements would be presumed illegal and the Federal Trade Commission would be given the authority to stop the agreements.