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Competition Brings Choices for Consumers
The Senate Judiciary Committee, where I serve as the top Republican, this week passed legislation to prohibit brand-name drug manufacturers from using pay-off agreements with generic pharmaceutical companies to keep cheaper generic prescription drugs off the market. I’ve been working on this bill with Senator Herb Kohl from Wisconsin for several years.
We’re working to end these agreements that line the pockets of both the generic and brand-name companies while denying consumers the opportunity to purchase cheaper prescription drugs.
For example, Cephalon Corporation paid $136 million to keep four different competitors out of the market for its drug Provigil, a narcolepsy drug, for six years. During that time, Provigil sales in the United States alone were more than $3.1 billion. In a separate instance, Bayer spent $400 million to pay off three different potential competitors, which kept a generic version of the antibiotic Cipro off the market for six and a half years.
At a time when our federal health care programs such as Medicare and Medicaid are facing extraordinary fiscal strains, this wheeling and dealing only delays the entry of lower priced medicines in the marketplace.
The Federal Trade Commission estimates that if our legislation were to become law, consumers would save $3.5 billion every year. In addition, the Congressional Budget Office estimates that our bill, if enacted, would save taxpayers $2.68 billion over ten years. That’s a lot of money that we can save – on top of ensuring more choices of medicines for consumers. It’s a win-win.
This legislation would help end a practice seriously impeding generic drug competition – competition that could save American families and taxpayers billions of dollars in health care costs. I hope the Senate leadership brings up the bill for consideration by the full Senate as soon as possible.
July 22, 2011
The Senate Judiciary Committee, where I serve as the top Republican, this week passed legislation to prohibit brand-name drug manufacturers from using pay-off agreements with generic pharmaceutical companies to keep cheaper generic prescription drugs off the market. I’ve been working on this bill with Senator Herb Kohl from Wisconsin for several years.
We’re working to end these agreements that line the pockets of both the generic and brand-name companies while denying consumers the opportunity to purchase cheaper prescription drugs.
For example, Cephalon Corporation paid $136 million to keep four different competitors out of the market for its drug Provigil, a narcolepsy drug, for six years. During that time, Provigil sales in the United States alone were more than $3.1 billion. In a separate instance, Bayer spent $400 million to pay off three different potential competitors, which kept a generic version of the antibiotic Cipro off the market for six and a half years.
At a time when our federal health care programs such as Medicare and Medicaid are facing extraordinary fiscal strains, this wheeling and dealing only delays the entry of lower priced medicines in the marketplace.
The Federal Trade Commission estimates that if our legislation were to become law, consumers would save $3.5 billion every year. In addition, the Congressional Budget Office estimates that our bill, if enacted, would save taxpayers $2.68 billion over ten years. That’s a lot of money that we can save – on top of ensuring more choices of medicines for consumers. It’s a win-win.
This legislation would help end a practice seriously impeding generic drug competition – competition that could save American families and taxpayers billions of dollars in health care costs. I hope the Senate leadership brings up the bill for consideration by the full Senate as soon as possible.
July 22, 2011