NAPM URGES CONGRESS TO REJECT PATENT EXTENSIONS THAT WOULD COST AMERICAN CONSUMERS BILLIONS OF DOLLARS

For Immediate Release:

June 27, 2000-The National Association of Pharmaceutical Manufacturers (NAPM) today praised Senators Richard Durbin, Tim Johnson, Edward Kennedy, Patrick Leahy, Olympia Snowe, Paul Wellstone, and others for fighting proposed amendments to appropriations and other "must pass" legislation that would increase patent terms on drug products. These patent extensions would unnecessarily delay market competition, prolong monopoly prices, and dramatically increase the cost of the Medicare prescription drug benefit this Congress is now considering, while providing no consumer benefit, whatsoever.

Reject Schering-Plough's Newest Attempt To Extend Its Patent On Claritin®

NAPM urges Congress to reject Schering-Plough's latest attempt to secure a three-year patent extension of its blockbuster antihistamine, Claritin®. Although Congress has rejected this patent extension three times, Schering-Plough is trying once again to extend its monopoly on this drug with over $1 billion in annual U.S. sales. Under the guise of creating a new, "fairer process" for securing a patent extension, Schering-Plough proposes that either the Federal Court of Claims or the Patent and Trademark Office determine patent extensions for drugs based on biased criteria that can only lead to one result -- a monopoly extension for Claritin®. "Americans would pay billions more to Schering-Plough and get nothing for it if Claritin®'s patent is extended," said Robert S. Milanese, President of the National Association of Pharmaceutical Manufacturers.

Reject the Columbia University Process Patent Extension

Congress must reject Columbia University's request for an extension of its fundamental cell transformation process patent, which is used in biotech products to treat life-threatening or chronic diseases. The one-percent royalty Columbia receives through licenses to use its process represents approximately $100 million dollars per year of added expenditures for the manufacturing of affected biotech products -- products used to treat cancer, anemia, hemophilia, and other life-threatening or chronic diseases. "Congress must reject this patent extension, the cost of which would be borne by many of our nation's seniors suffering from life-threatening or chronic diseases," said Robert S. Milanese, "Columbia University has had at least two opportunities to argue for its patent extension in the light of day. Yet, it has rejected the traditional legislative process of hearings and markups by the appropriate authorizing committees; choosing, instead, to slip its $100 million per year windfall into an appropriations bill when no one is looking," Milanese said.

NAPM strongly objects to both of these patent extensions, which would cost American taxpayers, consumers, third-party payors, and state and local governments billions of dollars in extra health care expenditures.

NAPM is a national, not-for-profit trade association representing manufacturers and distributors of finished, multi-source generic pharmaceuticals, manufacturers and distributors of bulk active pharmaceutical chemicals, and suppliers of other goods and services to the generic industry.

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Contact:
Julie Gross Gelfand
HLM&S PR
Jgelfand@hlms-net.org
1-888-571-2500 or (516) 536-2020

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For more information about NAPM and generic drugs, contact Robert S. Milanese or Leon Shargel at NAPM, (631) 580-4252.

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