E-DRUG: Affordable prescription drugs Act (USA)
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[from PHARM-POLICY; WB]
This is the press release issued by Rep. Brown today.
Jamie
FOR IMMEDIATE RELEASE: Thursday, September 23, 1999
BROWN INTRODUCES INITIATIVE TO
REDUCE HIGH PRESCRIPTION DRUG PRICES THROUGH MARKET COMPETITION
Legislation requires product licensing of essential
prescription drugs, disclosure of manufacturing costs
Washington, DC -- In an effort to make prescription
medicine more accessible and affordable for people across the
country, U.S. Congressman Sherrod Brown (D-OH) today introduced
an initiative that would use market competition to reduce the
high cost of prescription drugs. Brown, the top Democrat on the
Commerce Health and Environment Subcommittee, said his proposal
would implement product licensing of patents on essential
medicines whose high prices are a detriment to public health.
"Drug companies have scored a triple-double. They get
huge tax breaks, most research and development is publicly
funded, and drug firms' charge the highest drug prices in the
world. American drug companies have had it good for a long time.
But these good times have been at the expense of people who
cannot afford to pay absurdly high prescription drug prices.
We must protect public health and make essential prescription
drugs more affordable," Brown said.
"This bill lowers drug prices through competition, not
price controls. It also will help a child from a low-income
family or a senior on a fixed income afford medicine prescribed
by a doctor," he added.
Brown's Affordable Prescription Drugs Act would allow
consumers to obtain lower prices through competitive, rather than
monopolistic, pricing. Under certain conditions -- if a
prescription drug provides a substantial public health benefit --
the federal government could require drug manufacturers to
license their patent to generic drug companies. Competitors would
be permitted to market new drugs before patent expiration,
paying the patent holder royalties for that privilege. Under the
bill, individuals or citizen groups can request the Secretary of
Health and Human Services to determine that compulsory licensing
of a patent-protected drug should occur.
The legislation also would require drug manufacturers to
publicly disclose audited financial information relevant to the
pricing of their drugs. This provision will allow consumers
information to assess the reasonableness of drug companies'
pricing. If a drug manufacturer fails to comply with this
provision, it would be ineligible to participate in
federal health care programs, including Medicare, Medicaid, and
veterans health care.
"The drug companies must understand how important their
products are for the American people, especially the elderly.
They're not selling VCRs or furniture, where people can look
elsewhere for a less expensive product, or simply go without.
We're talking about health care, and the fact that
people often can't live without these drugs," Brown said.
Brown said his bill is necessary because drug companies
charge Americans higher prices -- in many cases twice as high --
than the citizens of any other industrialized nation. He said an
average dosage (60 tablets) of Zocor, which treats high
cholesterol, costs $44 in Canada and a $102 in the U.S. In
addition, one month's supply of Tamoxifen, which treats breast
cancer, sells for $156 in the United States compared with only
$12 in Canada. Brown also noted drug company profits outpace
those of every other industry by at least 5 percent and that drug
companies spent $8.3 billion on marketing and advertising last
year.
"Prescription drug prices can be reduced and not affect
drug firms' research and development capabilities or their
advertising budgets. But these prices cannot remain high without
seriously affecting public health and fueling unsustainable
health care inflation. Our goal is to ensure working families
and low-income people obtain access to prescription drugs,"
Brown said.
Brown today joined Reps. Tom Allen (D-ME), Marion Berry
(D-AR), Janice Schakowsky (D-IL), and Dennis Kucinich (D-OH) in
unveiling the measure at a Capitol Hill press conference.
-30-
*Summary of Brown's Affordable Prescription Drugs Act available
on request*
THE AFFORDABLE PRESCRIPTION DRUGS ACT
U.S. Congressman Sherrod Brown (D-OH), ranking member,
Commerce Health and Environment Subcommittee
Bill Summary
The Affordable Prescription Drugs Act would use market
competition to bring down the cost of prescription drugs.
Drawing from intellectual property laws already in place for the
cable industry, pollution prevention inventions, and other
product and services prone to monopolistic pricing, the
legislation would establish "product licensing" for essential
prescription drugs.
The bill would also require drug companies to publicly
disclose the financial information necessary to evaluate the
prices charged for patented drugs. Information is our best
weapon against pricing abuse.
Product Licensing
Under certain conditions -- if, for example, a prescription
drug provides a substantial public health benefit and its price
is unjustifiably high -- the federal government could require
drug manufacturers to license their patent to generic drug
companies. Competitors would be permitted to market new drugs
before patent expiration, paying the patent holder a reasonable
fee or royalty for that privilege.
The bill is explicit in requiring compulsory licensing to be
carried out in a manner consistent with international
intellectual property agreements.
Information Disclosure
Drug companies would be required to publicly disclose
audited financial information justifying the prices they charge
for drugs still under patent.
Manufacturers that fail to comply with this provision would
lose their right to participate in Medicaid, VA and all other
federal health care programs.
This legislation is not designed to produce artificially low
prescription drug prices, which could jeopardize the pipeline of
new prescription drugs. This legislation is designed to correct
unjustifiably high prices that (1) inflate private and public
health care spending; and (2) undercut access for seniors.
--
James Love, Director, Consumer Project on Technology
I can be reached at love@cptech.org, by telephone 202.387.8030,
by fax at 202.234.5176. CPT web page is http://www.cptech.org
--
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