Governors urge halt to drug-pricing tactic

By Julie Appleby
USA Today

A coalition of governors, businesses and labor leaders said yesterday that states could save $600 million over the next three years if Congress acts to tighten a law that regulates drug patents.

The savings would come from 17 drugs whose patents are about to expire, including allergy drug Claritin, asthma drug Flovent and cancer treatment Lupron, according to Business for Affordable Medicine.

The coalition, which includes Hawai'i Gov. Ben Cayetano, fears the drug industry will use provisions in a 1984 law to fight those expirations. The law was designed to get more generic drugs on the market, but drug industry critics say it is being used increasingly to extend patents.

The group did not specify what it wants Congress to do, other than hold hearings on the law to "determine if there are provisions which are contributing to the high cost of prescription drugs."

Their move is the latest in a growing battle pitting brand-name drug makers against consumer groups, states and generic-drug makers, who have sued over patent-extension efforts.

The drug industry fired back yesterday with its own news conference. Reopening discussion of the law could cut money needed for research, the Pharmaceutical Research and Manufacturers of America said.

Brand-name drugs generally have 20 years of patent protection. Once generic competition begins, prices can drop by half or more.