![]() FOR IMMEDIATE RELEASE For more information contact Nicole Dueffert (202) 225-4076 July 1, 1999 ![]() |
PATENT EXTENSION PROPOSAL FOR PHARMACEUTICAL COMPANIES = CONTINUED HIGHER PRICES |
Washington, D.C. — United States House of Representatives Prescription
Drug Task Force Co-chairman Marion Berry today criticized a proposal in
Congress that would cost consumers billions of dollars by granting
multibillion dollar patent extensions to a handful of drugs manufactured
by five pharmaceutical companies. Berry testified before the House
Judiciary Committee Subcommittee on Courts and Intellectual Property
against the legislation.
"For the millions of consumers who take Claritin and other medications, this legislation would mean hundreds of dollars taken out of their pockets each year," Berry said. "Pharmaceutical companies, which make billions of dollars a year, will stop at nothing to make a buck, even hurting consumers who they know will benefit from a less expensive generic version. Drug companies have more than recovered their original investment. It is shameful that consumers have to suffer because of the greed of the pharmaceutical companies." The so-called "Patent Fairness Act of 1999," or H.R. 1598, would give three additional years of market exclusivity to Claritin, an allergy medication manufactured by Schering-Plough which was projected to have $1.8 billion in sales last year. This will give a few drug makers an estimated windfall of over $6 billion. Schering-Plough and the other companies that would benefit from the proposed legislation have received additional patent protection that they could not have foreseen when they developed their "pipeline" drugs -- including two years from the Waxman-Hatch Act. Claritin also received nearly two years of additional patent protection from the 1994 GATT agreement. The Drug Price and Competition and Patent Term Restoration Act of 1984, better known as the Waxman-Hatch Act, grants new drugs up to five years in patent extensions and five years in market exclusivity. When the Act was enacted into law, the makers of drugs already seeking FDA approval had no need for additional incentives, yet received a generous two additional years of market exclusivity -- a windfall which they now claim is inadequate. |
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