HATCH/WAXMAN ACT -- HON. RON PACKARD (Extensions of Remarks - September 19, 2000)

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HON. RON PACKARD OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Tuesday, September 19, 2000

Mr. PACKARD. Mr. Speaker, in 1984, the Hatch/Waxman Act was signed into law to bring order to the pharmaceutical economy
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and benefit the American consumer. This Act was enacted in response to rising drug prices and assertions by drug companies that long regulatory delays increased costs for consumers. The Act served as a compromise between the competing interests of generic and brand name drug manufacturers. Under the Act, brand drug companies received extended patent periods. The patent extensions were designed to enable brand companies to make greater profits, which allow for more research. The Act also provided generic drug companies with the right to develop less-costly generic versions of brand drugs as the patents expire.

The Act has been a success for two reasons. First, it provides brand name and generic drug companies with incentives to provide better quality products for consumers; and second, it encourages the brand name industry to dedicate more of its profits to research and development of new drugs under a set patent expiration date.

The best way to ensure continued investment in new drug research is to make sure the Hatch/Waxman Act is enforced fairly and consistently. By doing this, we can give the American public greater access to innovative and affordable medicine, and drug companies will have the incentives intended by Congress to continue to provide their services.
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