Biogenerics Would Reduce Health Care Costs For Patients, Says GPhA

Main Category: Pharma Industry / Biotech Industry
Also Included In: Public Health
Article Date: 25 Jul 2008 - 3:00 PST

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The Generic Pharmaceutical Association (GPhA) today said the availability of a workable pathway that provides timely patient access to safe, affordable and life-saving biogeneric medicines would save consumers and the health care system billions of dollars. The skyrocketing prices of certain prescription drugs were the focus of a Joint Economic Committee hearing on Capitol Hill yesterday (www.jec.senate.gov).

"Countless patients in need of life-saving biopharmaceutical treatments are struggling to afford their high costs. For patients facing serious conditions such as cancer and heart disease, safe and affordable biogenerics would allow them to improve their lives while reducing their health care costs," said GPhA President and CEO Kathleen Jaeger. "With some biopharmaceuticals costing hundreds of thousands of dollars per year, patients must have timely access to life-saving biogeneric medicines."

According to several studies, the availability of biogenerics would save the health care system billions of dollars each year. A study by Insmed, a biotech company, estimated $67 billion to $108 billion in savings over 10 years, with $236 billion to $378 billion in savings over 20 years for generic versions of the top 12 categories of biologics with patents that either have expired or are soon to expire. A study conducted on behalf of the Pharmaceutical Care Manufacturers Association (PCMA) estimated $14.9 billion in savings over a standard 10-year scoring period for certain biopharmaceuticals in the top 200 Medicare Part B reimbursed categories. And Express Scripts estimated $71 billion in savings over 10 years for products in four therapeutic categories -- interferons, erythropoietin, growth hormone, and insulin.

"These are significant savings that we cannot afford to ignore. That's why the Food and Drug Administration needs a workable approval pathway for biogenerics -- one without lengthy and overreaching market exclusivity provisions or patent extensions that simply result in an empty promise to patients," said Jaeger.

GPhA represents the manufacturers and distributors of finished generic pharmaceuticals, manufacturers and distributors of bulk active pharmaceutical chemicals, and suppliers of other goods and services to the generic drug industry. Generics represent 65% of the total prescriptions dispensed in the United States, but only 20% of all dollars spent on prescription drugs.

http://www.gphaonline.org

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