GENERIC DRUGS SAVE CONSUMERS BILLIONS WHILE INCREASING CHOICE AND COMPETITION -- HON. MARION BERRY (Extensions of Remarks - September 19, 2000)

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HON. MARION BERRY OF ARKANSAS IN THE HOUSE OF REPRESENTATIVES Tuesday, September 19, 2000

Mr. BERRY. Mr. Speaker, since the Drug Price Competition and Patent Restoration Act, better known as the Waxman-Hatch Act, was signed into law in 1984, generic drugs have been a major source of relief for many Americans who face extraordinarily high prescription drug prices.

The law struck a balance between the generic pharmaceutical industry and brand-name
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companies. It did this by speeding up the approval process for generic drugs, and also by guaranteeing brand-name companies a minimum amount of market exclusivity before generics are allowed to compete.

After the passage of Waxman-Hatch, the generic pharmaceutical industry grew from a $2 billion industry in 1984 to $8 billion in 1997. Over the same period, brand-name companies' sales grew from $17 billion to $77 billion.

According to the Congressional Budget Office, generic pharmaceuticals saved consumers $8 to $10 billion dollars in 1994 alone. As fast as drug prices have been rising in recent years, they would have increased much faster if consumers had not had access to generic alternatives.

Despite the great benefit generic alternatives have provided to many patients, I am concerned about the activities some brand-name manufacturers have engaged in to obstruct generic competition. These efforts by brand-name companies include using payments to generic competitors, which are legally entitled to a period of being the exclusive competitor for 180 days, not to bring their product to market--in effect, this is buying a perpetual monopoly. Attempts to spread false information, lobby state legislators to restrict generic competition, and circumvent the ordinary process by having Congress pass special legislation granting patent extensions are other examples of anti-competitive behavior.

I have a great appreciation for what the generic pharmaceutical industry has done to benefit American consumers, and I am hopeful that in the not-too-distant future Congress will consider additional pro-consumer legislation to ensure consumers have increased access to more affordable generic prescription drugs.
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