E-drug: Sneak Prescription Drug Patent Extension in Appropriations Rider
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This is a Public Citizen press release.
It helped to defeat the bill.
Jamie
http://www.citizen.org/Press/pr-sid14.htm
Oct. 9, 1998
Sneak Prescription Drug Patent Extension in Appropriations Rider
Would Increase Drug Prices for Seniors
WASHINGTON, D.C. -- An 11th-hour attempt to gain patent extensions for
Claritin and Relafen, two of the top-selling prescription drugs in the
U.S., and five other drugs would cost millions for consumers, taxpayers
and all other health care payers. Among the hardest hit would be seniors
on fee-for-service Medicare who pay out-of-pocket for outpatient
prescription drugs.
The measure, sponsored by Sen. Frank Lautenberg (D-N.J.), is proposed to
be added as a rider to the 1998 Agriculture Appropriations bill. It
would allow manufacturers of seven prescription drugs to petition the
Patent and Trademark Office (PTO) for additional patent term extensions
beyond those permitted by the 1984 Waxman-Hatch Act. It would benefit
seven brand-name prescription drugs. The best-selling antihistamine
Claritin, with 1997 sales of $869 million, and the top anti-arthritis
drug Relafen ($419 million 1997 sales), would be the big winners. The
other drugs are Dermatop (for itchy skin), Penetrax (urinary tract
infection), Eulexin (prostate cancer), Cardiogen-82 (diagnostic imaging
agent) and Nimotop (used after head trauma).
"Seniors on fixed incomes could pay dearly for this `second bite at the
patent apple' deal for big drug companies," said Dr. Sidney M. Wolfe,
director of Public Citizen's Health Research Group. "Congress should
reject this attempted end run on the Waxman-Hatch Act's careful balance
between promoting innovation and ensuring that consumers have timely
access to affordable medicines."
Studies have shown that generic drugs sell for 30 percent to 60 percent
less than brand-name drugs. A spring 1998 survey of selected Washington,
D.C., pharmacies found the retail price of Claritin to be $68.40 a month
and that of Relafen, $74.40. Availability of a generic version would
save this area's consumers from $246 to $492 a year for Claritin and
from $268 to $535 a year for Relafen. Total annual savings to all health
care payers would range from $261 million to $522 million for Claritin,
and from $126 million to $252 million for Relafen.
"Claritin's manufacturer, Schering-Plough, had 1997 profits of $1.2
billion, a 17 percent profit rate," Wolfe said. "It is unconscionable
that seniors on fixed incomes could be required to pay hundreds of
dollars more a year to further boost the company's bottom line because
Congress granted the company a special procedure to pursue another
Claritin patent extension at the 11th hour in a rider to an
appropriations bill."
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http://www.house.gov/waxman/gro/drug/Drep/drep.html
Prescription Drug Pricing in the United States:
Drug Companies Profit at the Expense of Older Americans
Minority Staff Report
Committee on Government Reform and Oversight
U.S. House of Representatives
Updated October 20, 1998
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James Love, Consumer Project on Technology
P.O. Box 19367, Washington, DC 20036
202.387.8030; f 202.234.5176
http://www.cptech.org, mailto:love@cptech.org
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