...BUT PhRMA WARNS CONGRESS AGAINST LIMITING PATENT SETTLEMENTS

Officials from the Pharmaceutical Research andManufacturers of America (PhRMA) warnedCongress against passing legislation to curb authorizedgenerics, arguing that such restrictions couldcause drug patent litigation costs to skyrocket.Testifying before the Senate Judiciary Committee,PhRMA President Billy Tauzin maintained that manyarrangements that result in the introduction of anauthorized generic drug are implemented in an effortto resolve prolonged and costly patent litigationbetween the branded manufacturer and the genericchallenger.

Noting that it is not uncommon for drug patentsuits to stretch on for several years, Tauzin cited estimatesthat, for every dollar branded pharmaceuticalcompanies spend on research and development,another 27 cents is spent defending patented drugsfrom litigation.

Proposed legislation preventing the use of authorizedgenerics to settle drug patent disputes "wouldmake settlements less likely and less efficient andwould threaten both innovation and generic drugdevelopment," he warned Congress.