Will Biologics Policy Push PHRMA Away?

[babylonsister]

WILL BIOLOGICS POLICY PUSH PHRMA AWAY?.... It looks like President Obama has decided to annoy the big pharmaceutical companies in a big way, enough to possibly push PhRMA, which has supported the reform initiative, into the opposition camp.

At issue is the president's support for a specific measure that would shorten the time that expensive biotechnology drugs would be shielded from generic competition.

Any White House intervention would be welcome news to generic pharmaceutical companies, as well as to some consumer groups, insurers and big employers, which have complained that the proposed House and Senate bills would not allow for robust competition. <...>

Both the House and Senate bills would for the first time create rules by which so-called biologic drugs, which are made in living cells, would be subject to copycat competition, saving the health care system billions of dollars over 10 years.

The drugs, which include big sellers like the cancer drug Avastin and the arthritis drug Enbrel, can cost tens of thousands of dollars a year. Biologics are not governed by the Hatch-Waxman Act, which covers generic competition for more conventional drugs made from chemicals, like Prozac or Lipitor. After the patent on a biologic drug expires, competitors may produce similar products, but they are treated by the health care system as if they were entirely new drugs, not substitutes like generics.

To retain incentives for innovation, both the House and Senate bills would provide a brand-name biologic drug with 12 years of protection from competition, even if the drug's patents expire before that.

The matter appeared settled when the House and Senate passed their versions, but the president personally intervened on this point during this week's negotiations, pushing to make the exclusivity window smaller than the industry wants. For PhRMA, that means fewer profits. For consumers, especially those fighting cancer, it means more competition and lower prices. In other words, Obama is making the final bill even better.

To put it mildly, the drug manufacturers' lobby isn't happy, and is now threatening to pull its support for health care reform. But as Josh Marshall noted, it's a little late in the game: "Everyone's already voted. In both chambers. Perhaps someone could change their position if one of the big ticket compromise issues -- taxes, abortion, exchanges, etc. -- didn't go their way. But here, is the idea that someone is going to change their vote based on a small revision to the number of years of patent protection against generics because Billy Tauzin giving the ceremonial thumbs down? There's not even really time or ambiguity enough to come up with a good cover for changing positions on this basis."

Of course, if voters in Massachusetts decide on Tuesday to kill this once-in-a-generation opportunity to improve a dysfunctional system that punishes millions, it may be a moot point.

—Steve Benen

[Kdillard]

1. That is good news.

[IndianaGreen]

2. Democrats voted against drug importation in order to save the White House's Big Pharma deal

A deal made with the Devil!

[nightrain]

3. precisely. Whatever happened to standing on "traditional" Dem principles

and values? Gone.... That's the impact of corporate money and power. So few Dems these days aren't beholden to corporations of one sort or another. The corruption is killing representative style of governing.

[CoffeeCat]

4. I'm happy the President did this, but overall greatly disappointed...

I think it is a very wise and positive move that Obama did this. Allowing generics to be
manufactured quicker does save the consumer money, and it also is a blow to these large
pharmaceutical companies, that seem to get everything they want from our elected leaders.

So, yes--this is a good thing.

However, this "good thing" is tucked inside a colossal failure of a healthcare bill that
will most likely usher in significant defeats for our party in 2010, and maybe even beyond.

This bill was written by the healthcare insurance and the pharmaceutical lobby. Remember, there
is a provision in this bill that PREVENTS Americans from getting their drugs from Canada. It is
widely known that Obama met with big Pharma and that they lobbied him hard to prevent Americans
from getting those drugs from Canada. So, this impedes competition--and also increases drug
prices for Americans.

Big Pharma reaps billions (and consumers will lose billions) as a result of that decision.

Furthermore, this healthcare bill is an unfunded mandate. Forcing us to participate in a broken
system. There is no real reform. There are NO cost-control provisions. So, even if they can't
refuse you for a pre-existing condition--they can charge you whatever they want! How in the world
are people, in these trying economic times, going to come up with $4,000, $6,000 or even $2,000 just
to buy in?

Are we just expecting that these health-insurance companies--that are killing people daily--are going to
have fair co-pays and deductibles? After we "buy in" and pay the thousands, it's possible that they
could charge exhorbitant amounts for co-pays/deductibles--because that would keep people from using
the services and ultimately save money for those insurance companies. They are no controls on ANY
of this. Again, do we really expect these bloodsuckers to play fair?

Yes, this recent move is positive. However, I am really tired of sitting under the table---watching
the White House, our politicians and these godforsaken lobbyists dictate horrible policy. I'm
expected to be excited about the table scraps that they throw down, after they've just horrendously
screwed us over.

And isn't the big problem that "We The People" are under the table, in the first place--and that
the corporations and a bunch of bought-and-paid-for politicians are the ones with seats at the
head table?

I'm sorry if I'm not overjoyed--because the enormous failure and non-reform nature of this bill--
totally overshadows any little glimmers of good that it contains.

[msongs]

5. generics imported from India.....probably nothing but chalk tablets nt