When it comes to continued growth in
the generic pharmaceutical industry, "the
wind is at our back," according to Doug
Long, vice president of industry relations
at IMS Health. Speaking at the Generic
Pharmaceutical Association's (GPhA's)
Annual Policy Conference, Long noted
that the generic industry is growing at
roughly 14%, a pace that is twice as fast
as the world pharmaceutical market.
The reasons behind this substantial
growth include the strong utilization of
generics through the Medicare prescription
drug benefit, an aging population
with a growing reliance on medicines,
and more than $50 billion in
brand products that will be coming off
patent during the next few years. Only
the biotech sector is continuing to
grow at a faster rate than generics, at
17.9%. With the increased growth in
the biotech sector comes the hope of
more cures, but also of increased costs
for patients. A biotech drug used to
treat colon cancer, for example, costs
$100,000 a year, with some biologics
costing many times more. With those
high biotech prices in mind, it was no
surprise that many conference speakers
focused on the need for Congress
to approve legislation giving the FDA
the authority to approve generic versions
of biopharmaceuticals, or biogenerics.
"Now is the time to pass legislation
enabling the FDA to create an abbreviated
regulatory pathway for safe, pure,
and effective biogenerics," said Christopher
Begley, president and chief
executive officer of Hospira, Inc, which
is actively investing in the biogeneric
market. "When lifesaving drugs are not
affordable—regardless of their safety
and efficacy—they are irrelevant."
Congressman Frank Pallone (D,NJ),
who chairs the House Energy and Commerce
Subcommittee on Health,
agreed on the need for Congress to
take action on biogenerics. Although
biogenerics legislation was not included
as part of an FDA reform bill, Pallone
asserted that the issue is still moving
forward. Pallone pledged that the
House of Representatives would continue
to hold hearings on biogenerics
and develop legislation in the coming
months.
Biogenerics legislation is only one of
many issues impacting the generic
industry. Conference speakers also discussed
citizen petitions and patentsystem
reforms. Citizen petitions, which
can deal with legal, regulatory, and scientific
matters, are often filed with the
FDA on the eve of a generic application's
approval. The vast majority are
dismissed without merit. Unfortunately,
as FDA Deputy Commissioner
Janet Woodcock, MD, pointed out,
regardless of their merit, citizen petitions
"are very labor-intensive," and
their review can delay generics from
coming to market in a timely manner.
The delay could be days or even years,
giving the brand company a longer
monopoly and costing patients millions
of dollars. Fortunately, legislation recently
approved by Congress would
address citizen-petition abuse by requiring
petitions to be reviewed within
a 6-month time period and would allow
for the simultaneous consideration of
the generic application and the petition.
10th Annual IGPA Conference
For a look at the international generic
pharmaceutical industry, join us for
the 10th Annual International Generic
Pharmaceutical Alliance (IGPA)
Conference from November 28 to
December 1, 2007, in Miami Beach,
Fla. Details are available online at
www.gphaonline.org.
In addition, the House and Senate
are considering patent-reform bills that
would change the way generic companies
undertake patent challenges.
Some lawmakers want to make changes
to inequitable conduct, which enables
generic companies to challenge brand
companies that use fraudulent statements
and misconduct to garner
patents from the Patent and Trademark
Office (PTO). Depending on how the
changes are made, it could result in the
PTO mistakenly issuing patents or make
it more difficult for generic companies
to challenge questionable patents and
bring an affordable medicine to market.
The industry will be closely monitoring
the legislation.
Whether it is patent reform, biogenerics
legislation, or other health
care matters, decisions made by lawmakers
on Capitol Hill will affect the
strength of the wind at the industry's
back in the future. The industry will be
working together to make sure that the
wind is blowing in favor of increasing
patient access to safe, effective, and
affordable generics.