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Copyright 1999 Federal News Service, Inc.  
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AUGUST 4, 1999, WEDNESDAY

SECTION: IN THE NEWS

LENGTH: 1011 words

HEADLINE: PREPARED TESTIMONY OF
U.S. REPRESENTATIVE ED BRYANT
(R-TN)
BEFORE THE SENATE COMMITTEE ON THE JUDICIARY

BODY:


TESTIMONY OF REP. EDWARD BRYANT TO U.S. SENATE JUDICIARY COMMITTEE
August 4, 1999
Thank you, Mr. Chairman, for providing me with the opportunity to journey to the other side of the Capitol in order to present my views on the important issue before you. It is, indeed, a pleasure to have the opportunity to visit again with a number of my former colleagues from the House who have exchanged one view of Washington for another.
I would like to commend one of those former House members, Senator Torricelli, for his commitment to fair patent treatment for pharmaceutical products and for his support of a independent process to review possible inequities in the patent treatment of pipeline drugs.
But before I do so, Mr. Chairman, I also would like to acknowledge your leadership on this issue over the years. I want to emphasize that, despite my belief that we need a process to review the patents of some pipeline drugs, I consider the 1984 Hatch-Waxman Act a monumental achievement. It has helped spur pharmaceutical research and also enabled consumers to experience the benefits of this research in a more timely fashion.
We are here to discuss S. 1172, Senator Torricelli's proposal to establish an independent process within the Patent and Trademark Office to review the status of seven pipeline drugs that faced significant delays in the regulatory approval process. While the bill differs in some respects from the Bryant-McDermott measure, we are in accord on the core proposal.
This effort is about three principles - fair play, equity, and removing politics from the patent process. We believe in fair and equitable treatment of all involved in this issue both in the regulatory process and in the independent review process that we and Senator Torricelli propose. Importantly, the review process would be a public process open to all interested parties and - by taking it out of Congress - we would provide for a decision on the legal merits.
Hatch-Waxman, as you know, limited patent restoration for pipeline drugs to two years, which was intended to deal with a Food and Drug Administration approval time that averaged slightly more than 2.25 years. But it later turned out that several drugs were caught in the regulatory approval pipeline much longer.
Since 1984, Congress has occasionally enacted specific legislation to deal with inequities discovered in the implementation of Hatch-Waxman. In each case, Congress concluded that the general rules adopted in 1984 were insufficient when applied to a particular situation. But Representative Jim McDermott and I, and more than (50) cosponsors from both sides of the aisle, have concluded that Congress needs a better way of addressing regulatory delays that have diminished the useful life of a pharmaceutical patent. We believe that Congress needs to enact a process to handle these issues rather than tackling each situation on an ad hoc basis.Our approach - and I believe this is true of Senator Torricelli's proposal as well - is based on two worthwhile principles. One principle is that patents are an important incentive for research and inventions. The second principle is that Congress should not make patent extension decisions on a case-by-case basis.
First, there is no question that our prosperity in America is built, to a great extent, on research and development. Patents foster that research. In fact, the relationship of R&D and patent integrity is one of mutual dependence in which each fosters the other for the benefit of us all. We know that those who conduct pharmaceutical research help provide one of the best patient protection policies that we can buy as Americans. Just ask anyone who has benefited from the healing powers of a new breakthrough pharmaceutical. At the same time, we also know that R&D can be expensive. This is particularly the case when it comes to pharmaceutical innovations. Without strong and fair patent protection, research-based pharmaceutical companies would not have the incentive or the wherewithal to continue research that would lead to tomorrow's breakthrough drugs.
The second principle involves the necessity of establishing a fair, consistent process to protect the integrity of patents. In this context, it is vitally important to say what HR. 1598 and S. 1172 would not do. They do not automatically extend a patent. Rather, they would establish a fair and open process that is conducted in a public forum. This would be an independent, non-political review. These bills would apply to seven pipeline drugs than spent over 60 months in the FDA's New Drug Approval process. All affected parties would be able to make their case before the appropriate body - the PTO, an independent agency whose experts deal with the legalities of patent issues day in and day out.
I believe strongly that these bills fulfill the intent of Congress. The record since 1984 is clear. When Congress passed Hatch-Waxman, it believed that there would be relatively quick FDA approval for drugs that were in the approval "pipeline" at the time. In fact, that did not occur. Because of lengthy regulatory reviews, many pipeline drugs received substantially less patent coverage than Congress intended. Often in Washington we talk of"unintended consequences." Hatch-Waxman truly involves a case of unintended consequences. But they are consequences that, nevertheless, should be dealt with.
Mr. Chairman, I am gratified that H.R. 1598 has attracted so many co- sponsors Democrat and Republican alike. I also am gratified that Senator Torricelli has introduced parallel legislation. I think this support demonstrates that there is widespread and growing support to enact a fair, independent process that protects patent integrity.
In sum, Mr. Chairman, I believe these bills have identified the right solution. It is a solution that provides patent integrity and, in so doing, ensures the continuation of research that leads to breakthrough drugs and other innovations that truly help people live longer and better lives. Thank you.
END


LOAD-DATE: August 5, 1999




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