Bill To Stop Generic Drug Payments Has Waxman's Support
March 30 2009 - 1:36PM
Dow Jones News
A bill that would ban brand-name pharmaceutical companies from
paying to stop cheaper, generic drugs from hitting the market was
introduced in the House last week with the support of Rep. Henry
Waxman, D.-Calif.
The bill is aimed at stopping payments lawmakers characterize as
anticompetitive and costing consumers and the federal government
billions of dollars a year by forcing people to continue to pay for
higher-priced, brand-name drugs.
The bill, authored by Rep. Bobby Rush, D.-Ill., and introduced
Wednesday, is scheduled to be discussed Tuesday at a hearing before
the House Subcommittee on Commerce, Trade and Consumer Protection.
The bill has the support of Waxman, chair of the powerful House
Energy and Commerce Committee; Rep. John Dingell, D.-Mich.; and
Rep. Edward Markey, D.-Mass.; among others.
President Obama said during his campaign that he supports
legislation to end these payments.
Rush introduced a similar bill last year, which was supported by
the Federal Trade Commission. FTC Chairman Jon Leibowitz said
Friday that stopping these "anticompetitive" deals is one of the
agency's highest priorities.
The FTC has been cracking down on these payments, also known as
pay-for-delay deals. In February, the agency announced a lawsuit
alleging that Brussels-based Solvay Pharmaceuticals Inc., the maker
of the testosterone drug AndroGel, entered into an illegal
agreement with generic drug companies Watson Pharmaceuticals Inc.
(WPI) and Par Pharmaceutical Cos. (PRX) to delay the introduction
of a generic competitor.
Although the FTC has gone after these sort of agreements, it's
unclear whether they are illegal as the Supreme Court hasn't ruled
on the issue.
In February, members of the Senate Judiciary Committee
introduced a similar bill to prohibit pay-for-delay deals.
-By Jared A. Favole, Dow Jones Newswires; 202-862-9207;
jared.favole@dowjones.com