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News (Media Awareness Project) - Wire: Drug lobbyists win consideration of antigeneric plan
Title:Wire: Drug lobbyists win consideration of antigeneric plan
Published On:1997-10-22
Source:Associated Press
Fetched On:2008-09-07 21:03:00
Drug lobbyists win consideration of antigeneric plan

WASHINGTON (AP) Prominent drug companies are making a lastminute push
in Congress to forestall cheaper generic versions of some popular medicines
that bring them hundreds of millions of dollars.

Critics say the effort illustrates how the end of a congressional session
is prime time for lobbying.

The drug companies, led by New Jerseybased BristolMyers Squibb, are
proposing to pay the government to extend their market monopolies on
bestselling brandname drugs such as the cancer treatment Taxol and the
allergy medicine Claritin.

The companies' money would be used for research on cancer, heart disease,
AIDS and other diseases. In return, generic makers of such drugs would be
frozen out of the market for up to five more years.

On Tuesday, the Senate Appropriations health subcommittee which is
pushing to complete work on its annual spending bill before Congress
recesses for the year took time out for a hearing to examine the idea.

Critics fear the provision might be attached to a mustpass spending bill.

"This specialinterest deal is breathtaking in its audacity," said Rep.
Henry Waxman, DCalif., an author of a 1984 law that controls the way
exclusive markets are granted to pharmaceutical makers. "It boils down to a
simple but profitable quid pro quo for the beneficiary companies."

Sen. Richard Durbin, DIll., said the proposed amendment reminded him of a
$50 billion tax break for the tobacco industry that was slipped into a bill
just before Congress recessed for the summer. The bill passed, but when the
provision became public embarrassed lawmakers were forced to undo it.

"Little did I know that another rotten mackerel would come floating by in
just another few weeks," Durbin said.

But Jane Kramer, a spokeswoman for BristolMyers Squibb, cited a long list
of patient advocacy groups, from breast cancer survivors to the Cystic
Fibrosis Foundation, that support the proposal because it would provide
research money for their causes.

"The issue is patient care, and what (treatments) patients might have
available," she said. She acknowledged that as the nation's largest maker
of anticancer drugs, the company has financially supported many of the
patient groups that are now backing the legislation.

Under a variety of arrangements, drug companies are given exclusive rights
to make drugs for a set period of time before generic versions can be
marketed.

The proposal now being reviewed was first floated several weeks ago in a
private meeting between lobbyists for BristolMyers Squibb and staff
members of the House Commerce Committee. It would create a "demonstration
project" in which drug makers would pay 3 percent of the money they make
from a particular drug to support biomedical research. In return, they
would receive up to five additional years of protection from generics.

The provision could apply to any drug approved by the Food and Drug
Administration in the past five years potentially dozens of products.

BristolMyers Squibb wants to protect Taxol, a chemotherapy treatment for
breast and ovarian cancer that brought the company more than $500 million
in business last year. Taxol's exclusive market expires in December.

Another supporter, drug maker Schering Plough, is facing expiration next
month of its exclusive market for Claritin.

Because of the high financial stakes and the relative obscurity of the
discussion, protecting drug markets from competition by generics has become
one of the most active areas of Washington lobbying and has spawned some
creative approaches.

The makers of the pain killer Lodine, WyethAyerst, unsuccessfully sought
last year to piggyback a twoyear patent extension onto the
KennedyKassebaum health insurance bill, in exchange for a $20 million
payment. And DuPont Merck has been lobbying state legislatures in an
attempt to protect the market of its blood thinner, Coumadin.
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