Contact Information: CONTACT INFORMATION: Eric Bolesh 919-433-0209
New Bill Would Limit Pharma's Anti-Generics Arsenal, According to Cutting Edge Information
| Source: Cutting Edge Information
RESEARCH TRIANGLE PARK, NC--(Marketwire - February 11, 2009) - Proposed legislation aims to
take a controversial option away from brand-name drug makers in their fight
against generics.
Last week, senators Herb Kohl (D-WI) and Chuck Grassley (R-IA) introduced a
bill that would prevent branded drug companies from simply paying generics
counterparts to keep cheaper copycat products off the market. The Preserve
Access to Affordable Generics Act targets the so-called practice of "pay to
delay," in which patent holders reach settlements with generic challengers
waiting to market their products. Such settlements tend to involve hefty
payouts to the generics manufacturers.
The bill's backers aren't the only parties watching drug makers. A
February 2 lawsuit filed by the Federal Trade Commission alleges that
Solvay Pharmaceuticals entered into an illegal agreement with generics
makers Watson Pharmaceuticals and Par Pharmaceutical. According to the
allegations, Solvay paid these companies to delay launching a generic
competitor to its own AndroGel, a testosterone drug.
Industry observers, however, say that such "pay-to-delay" agreements are
last-ditch options for most firms. The most popular strategies for fending
off generic competition, in fact, do not involve generics makers at all.
"Combating Generics" (http://www.PharmaGenerics.com), a report from Cutting
Edge Information, shows that better options are rooted not in the courtroom
but in the lab. Most companies pursue scientific R&D in an effort to
replace their drugs before patents expire.
Convenience means a new formulation retains patients even when the original
drug goes generic. Given the option between a branded drug's once-weekly
dose and a daily generic, for example, patients and their doctors will
favor the weekly drug. "Combating Generics" shows that 53% of companies
pursue new formulations, making it the most popular counter-generics
option.
The real prize is a next-generation drug that fully replaces the old
product. Although such development is inherently risky, it also offers one
of the most effective means of fighting off generic competitors. Half of
the companies surveyed by Cutting Edge Information were pursuing
next-generation R&D.
"At a basic level, deals with generics makers are anathema to branded
pharma companies," said Eric Bolesh, research manager at Cutting Edge
Information. "These firms are scientific innovators, and they're eager for
R&D-based options. Improving on a drug is option A, and it's usually
option B, too."
To download a brochure of "Combating Generics," go to
http://www.PharmaGenerics.com.