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White House Ignores Savings from Increasing Access to Generic Medicine

GPhA Expresses Disappointment in March 3 Remarks by President Obama

Arlington, VA., March 3, 2010 - The Generic Pharmaceutical Association today released the following statement by GPhA President and CEO Kathleen Jaeger on President Barack Obama’s March 3 remarks on health-care reform:

“The President is correct that we must absolutely address controlling costs in health-care reform. That’s what the American people expect from health care reform. And that’s what the American people get every day from using generic medicines. That’s why we are perplexed as to why the President has failed to recognize that increasing access to generic and biogeneric medicines will significantly reduce health care costs while also strengthening patients’ ability to receive quality care.”

“Time is running out to make sure all Americans have access to high quality affordable medicines. Yet, the White House seems undeterred in its push to ban pro-competitive patent settlements which have successfully brought generic medicines to more Americans. The fact that the White House appears to be ignoring is that the majority of patent settlements have proven to be abundantly pro-consumer by making lower-cost generic drugs available long before patents on the brand products were scheduled to expire. Banning good patent settlements is bad public policy and will not meet the President’s goal of controlling costs. Indeed, a patent settlement ban can substantially push up the cost of introducing a new generic and reduce consumer access. ”

“In addition to not banning pro-competitive, pro-consumer patent settlements, another way that President Obama can control costs is to ensure that all Americans have access to affordable biogeneric medicines. This move will help patients, particularly older Americans, who are currently struggling with paying for needed life-saving brand biopharmaceutical medicines. As a recent report from the Government Accountability Office clearly stated, Medicare beneficiaries who used expensive specialty-tiered brand drugs– many of them brand biologics -- are seven times more likely to hit the Medicare Part D doughnut hole and run out of drug coverage. Enacting a workable approval pathway for biogenerics that ensures access in a timely manner will help all Americans get the medicines they need to treat serious, life-threatening illnesses.”

“Congress and the Obama Administration should recognize that increasing access to generic and biogeneric medicines is a critical part of the solution to health care reform. Generic medicines save the health care system one billion dollars every three days. We need health-care reform legislation that will expand Americans’ access to affordable medicines, not pad the bottom lines of brand drug companies.”

GPhA represents the manufacturers and distributors of finished generic pharmaceuticals, manufacturers and distributors of bulk active chemicals and suppliers of other goods and services to the generic drug industry. Generics represent 74 percent of the total prescriptions dispensed in the United States but only 22 percent of all dollars spent on prescription drugs. For more information about the industry, visit www.gphaonline.org

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